look at attached file
A portfolio's expected return is dependent on the weights of the assets in that portfolio. : TRUE OR FALSE
A portfolio's standard deviation is dependent on the weights of the assets in that portfolio.
TRUE OR FALSE
A portfolio's expected return is dependent on the correlation of the assets in that portfolio.
TRUE OR FALSE
A portfolio's standard deviation is dependent on the correlation of the assets in that portfolio.
TRUE OR FALSE
Explain the difference between the idiosyncratic risk and systematic risk of a particular stock. (Hint: think about these risks in the context of a portfolio)
Suppose you want to invest in one stock and one bond. The expected return and standard deviation of returns are presented in the table below. Suppose you want to invest 50 percent in the bond and 50 percent in the stock. What is the portfolio’s expected return if the correlation between the two assets is .25?
| Asset | Expected Return (%) | Standard Deviation (%) |
| Stock | 16 | |
| Bond | 12 |
Suppose you want to invest in one stock and one bond. The expected return and standard deviation of returns are presented in the table below. Suppose you want to invest 50 percent in the bond and 50 percent in the stock. What is the portfolio’s standard deviation if the correlation between the two assets is .25?
| Asset | Expected Return (%) | Standard Deviation (%) |
| Stock | 16 | |
| Bond | 12 |
Suppose you want to invest in one stock and one risk-free bond. The expected return and standard deviation of the stock 9% and 16%, respectively. The risk-free bond has an expected return of 2%. Suppose you want to invest 60 percent in the stock. What is the portfolio’s expected return?
Suppose you want to invest in one stock and one risk-free bond. The expected return and standard deviation of the stock 9% and 16%, respectively. The risk-free bond has an expected return of 2%. Suppose you want to invest 60 percent in the stock. What is the portfolio’s standard deviation?
