Top Posters
Since Sunday
10
s
5
j
4
s
4
C
3
W
3
a
3
H
3
s
3
a
3
o
3
K
3
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
johnpaech johnpaech
wrote...
Go to Answer
Posts: 1098
Rep: 7 0
5 years ago
The volatility of a portfolio that consists of a long position of $10,000 in Wal-Mart and a short position of $2000 in Microsoft is closest to:
A) 9%
B) 14%
C) 11%
D) 12%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 198 times
3 Replies
Replies
Answer verified by a subject expert
pbrown223pbrown223
wrote...
#1
Posts: 439
Rep: 10 0
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
B
Explanation:  B) Var(Rp) = x12Var(R1) + x22Var(R2) + 2X1X2Corr(R1,R2)SD1SD2
= 1.252(.14)2 + (- 25)2(.24)2 + 2(1.25)(-.25)(0.7)(.14)(.24)
= .019525

stdev =   = .139732

Related Topics

johnpaech Author
wrote...
#2
4 years ago
This course drove me insane!
wrote...
#3
3 years ago
this course!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  503 People Browsing
 466 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 1782
  
 180
  
 159
Your Opinion
Previous poll results: What's your favorite coffee beverage?