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ANZ And BHP have a correlation of .2 Weight of the minimum variance portfolio 0.736 and 0.264.
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- The returns on assets C and D are strongly correlated with a correlation coefficient of 0.80. The variance of returns on C is 0.0009, and the variance of returns on D is 0.0036. What is the covariance of returns on C and D? Give typing answer with explanation and conclusionThe covariance of Security X's returns and Security Y's returns is 10, and the variance of Security X's returns is 13% and the variance of Portfolio Y's returns is 17%. The correlation coefficient of the security X and Y returns is closest to: 1.0.67 2.1.83 3.0.25 4.0.05What is the total variance of the following portfolio including 2 assets invested in the ratio of 3:1. Asset A: E(r) = 0.3 , s = 0.6 Asset B: E(r) = 0.4, s = 0.8 Correlation: 0.8 rf = 0.1 A) 1.14 B) 0.88 C) 0.38 D) 1.44
- Consider two assets with expected return R1=0.22,R2=0.55and variance are s1=0.80, s2=0.88 and r12=0.55 respectively.A portifolio with weights W1=0.25 and W2= 0.65 is formed calculate the expected return and variance of the portifolioIf standard deviation of security A is 27% and security B is 18%, the correlation coefficient between security A and B is -1, the weight of A for a minimum variance portfolio will be a. 0.4 b. 0.6 c. 0.2 d. 0.5Consider two risky assets that have returns variances of 0.0625 and 0.0324, respectively. The assets' standard deviations of returns are then 25% and 1 8%, respectively. Calculate the variances and standard deviations of portfolio returns for an equal-weighted portfolio of the two assets when their correlation of returns is 1.
- For minimum variance portfolio,the weight of Asset A1 Ltd in two asset portfolio ,having correlation coefficient of 0 with B2 Ltd , risk of 12 and 15 respectively is a. 0.39 b. 0.61 c. 0.55 d. 0.45A probability distribution of possible returns from a share has a variance of 0.0064. What is the standard deviation of this probability distribution? a. 0.08 b. 0.64 c. 8% d. Both (a) and (c)The covariance of returns between MSFT and AAPL is 0.0044. The standard deviation of the return of MSFT is 6.23%. If the correlation of returns between MSFT and AAPL is 0.6161, the variance of AAPL is closest to A. 2.7234%. B. 1.3141%. C. 0.1473%. D. 0.1146%.
- The variance of X is 0.36. The standard deviation of Y is 0.38. The correlation between the two is 0.01. What is the variance of a portfolio that invests -62.59% in X and the rest in Y? Note: Type -9 if the answer does not make sense.the variance of stock A is .004, the variance of the market .007 and the covariance between the two is .0026. what is the correlation coefficient?The variances of stocks A and B are 1 percentage square and 4 percentage square, respectively. If the covariance between the two stocks is 0.6 percentage square, what is the correlation? Dont