Home / Expert Answers / Finance / stock-a-has-a-standard-deviation-of-25-and-a-beta-of-1-2-stock-b-has-a-standard-deviation-of-45-a-pa664

(Solved): Stock A has a standard deviation of 25% and a beta of 1.2. Stock B has a standard deviation of 45% a ...



Stock A has a standard deviation of 25% and a beta of 1.2. Stock B has a standard deviation of 45% and a beta of 0.9. The returns on the two stocks are uncorrelated. The risk free rate is 3%, the market risk premium is 6% and the volatility of the market portfolio is 22% HHH Holding Inc is an unlevered company whose assets consist entirely of investments in Stock A and Stock B. The current market value of HHH’s investment in Stock A is $50 million and the current market value of HHH’s investment in Stock B is $100 million.



We have an Answer from Expert

View Expert Answer

Expert Answer


We have an Answer from Expert

Buy This Answer $5

Place Order

We Provide Services Across The Globe