issue on an individual asset - what is the expected return, variance and standard deviation of asset A only
what is the expected return, variance and standard deviation of asset A only?
the expected return of A = 11.5%
variance of A = square of s.d = 23%^2 = 529%2
standard deviation of asset A (s.d) = 23%
issue on an individual asset - what is the expected return, variance and standard deviation of...
Portfolio 1- calculate the expected return, variance and standard deviation of asset A 4.8%, Asset B 0.75%, Asset C 17.5 and 20.2 and risk free asset F. Note: there is also a risk free asset F whos expected return is 9.9% I WA TISK and fetui11 man those that are provided in the article. The table below gives information on three risky assets: A, B, and C. Correlations Asset Expected return Standard Deviation of the Return B C 0.4 0.15...
Help please 7. Calculate the Expected Return and Standard Deviation of the individual asset A and B presented below. ASSET A State Pr State Return in State Pr R(A) -15 % Pr*R Deviation Deviation Squared Deviation Sq *Pr 1 0.4 2 0.6 5% E(R)= Variance Asset A- sd asset A ASSET B State Pr State Return in State Pr*R Deviation Deviation Squared Deviation Sq *Pr State R(B) Pr 25% 0.4 1 15% 0.6 2 Variance Asset B= E(R) sd Asset...
1. The two-asset case The expected return for asset Als 5.50% with a standard deviation of 3.00%, and the expected return for asset Bis 5.25% with a standard deviation of 6.00% Based on your knowledge of efficient portfolios, fill in the blanks in the following table with the appropriate answers. Proportion of Portfolio in Security A Proportion of Portfolio in Security B W Expected Portfolio Return Standard Deviation 0, (%) Case I(PAR -0,4) WA TP Case II (PAN Case III(PAR...
Suppose there are three assets: A, B, and C. Asset A’s expected return and standard deviation are 1 percent and 1 percent. Asset B has the same expected return and standard deviation as Asset A. However, the correlation coefficient of Assets A and B is −0.25. Asset C’s return is independent of the other two assets. The expected return and standard deviation of Asset C are 0.5 percent and 1 percent. (a) Find a portfolio of the three assets that...
You invest $100 in a risky asset with an expected rate of return of 0.12 and a standard deviation of 0.15 and a T-bill with a rate of return of 0.05. A portfolio that has an expected outcome of $115 is formed by Investing $100 in the risky asset. Investing $80 in the risky asset and $20 in the risk-free asset. Borrowing $43 at the risk-free rate and investing the total amount ($143) in the risky asset. Investing $43 in...
A more risky stock has a higher ________. expected return standard deviation variance standard deviation and variance
10. The following lists the expected return and standard deviation of returns for four assets: Η μη ση Asset 1 0.10 0.20 Asset 2 0.20 0.25 Asset 3 0.15 0.25 Asset 4 0.12 0.15 What is the variance of a 50-50 portfolio of Asset 2 and Asset 3 if these assets are uncorrelated? (a). 0.031 (b). O.177 (c). 0.250 (d). 0.500
b. What are the variance and the standard deviation of each asset? c. What is the expected return of a portfolio with equal investment in all three assets? d. What is the portfolio's variance and standard deviation using the same asset weights in part Please show all steps! Expected return and standard deviation. Use the following information to answer the questions. Return on Asset R in Return on Asset S in State Return on Asset T in State State of...
8. Calculate the PORTFOLIO Expected Return and standard deviation of a 60/40 Portfolio of Asset A and asset B. ASSET A 60% ASSET B 40% Return in State Return in State R (A) R(B) PORTFOLIO Rport in Sate S R(P)i Deviation R(P)i Pr Portfolio (Deviation Portfolio 2 State S Squared Dev*Pr Pr State P 0.4 0.6 E(R) E(R) Portfolio Portfolio Var Portfolio sd - 9. Compare the Risk-Return of the two stocks ALONE and the joint risk in the portfolio...
You invest $100 in a risky asset with an expected rate of return of 9% and a standard deviation of 0.15 and a T-bill with a rate of return of 4%. What percentages of your money must be invested in the risky asset to form a portfolio with an expected return of 9%?