Hello, How are you ? I have some investment questions and I want you help me to

Question

Hello, How are you ? I have some investment questions and I want you help me to answer them as soon as possible. Please show me how you get the answers

4) Risk that cannot be eliminated through diversification is called ______ risk

A) Unique risk

B) Systematic

C) Diversifiable

D) Asset- specific risk

E) None of these options

8) You put 90% of your money in a stock portfolio that has an expected return of 11% and a standard deviation of 24% You put rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12% the stock and bond portfolios have a correlation of .12 what is the expected return for the resulting portfolio?

A) 10%

B) 10.5%

C) 11%

D) 11.5%

E) 12%

9 You put 90% of your money in a stock portfolio that has an expected return of 11% and a standard deviation of 24% You put rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12% the stock and bond portfolios have a correlation of .12 what is the standard deviation of the resulting portfolio?

A) 12%

B) 20%

c) 22%

D) 24%

E) 30%

Explanation / Answer

4) Risk that cannot be eliminated through diversification is called ______ risk

B) Systematic Risk

8)

Option B)

Returns=0.9*11%+0.1*6%=10.5%

9

Option C

Variance=wa^2*s.d.a^2+wb^2*sdb^2+2*wa*wb*correlation*sda*sdb

=0.9^2*24^2+0.1^2*12^2+2*0.9*0.1*0.12*24*12

=474.22

So, standard devaition=21.776%

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