please slove and explain how ansnwers were obtained There are just two chart shows their p...
There are just two securities in the market. The following chart shows their possible payoffs in each of five mutually exclusive states. State R2 Probability .10 WNP .10 . 20 RI 0.0% 4.0% 10.0% 20.0% 22.0% 10.0% 8.0% 5.0% 0.0% -1.0% .40 .20 (A) What are the expected returns for each security? What are the variances and standard deviations for each security? (C) Calculate the covariance of R, and R, and the correlation coefficient of R, and R. That is...
Suppose the expected returns and standards deviations of two stocks were stock A: E (R) =9%, STANDARD DEVIATION = 36% STOCK B: E (R) = 15%, STANDARD DEVIATION = 62% A. calculate the expected return of a portfolio that is composed of 35% of stock A and 65% of stock B. b. calculate the standard deviation of this portfolio when the correlation coefficient between the returns is 0.5 c. calculate the standard deviation of this portfolio (same weights in each...
There are three securities in the market. The following chart shows their possible payoffs: State .15 Probability Return on of Outcome Security 1 .192 142 .092 .042 Return on Security 2 .192 .092 142 35 Return on Security 3 .042 .092 .142 .192 WN .042 a-1. What is the expected return of each security? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Expected return Security 1 Security 2 Security 3 a-2. What...
For this question, i have trouble doing the first one. Can you please explain how can i get the RATE OF RETURN FOR RF? Thanks X Yand Zare portfolios of securities. Data pertaining to these portfolios and the market portfolio are given in the following table: Std dev(R 0.28 Cov(Ri Rm Portfolio E(RD Beta P p.m X 0.015 Y 0.23 ? 0.17 1.5 0.92 0.048 0.34 ? M ? 0.10 2 0.02 Also Cov(Rs.Ry= 0.04 REQUIRED risk free Calculate the...
Question 1: Suppose there are two risky assets, A and B. You collect the following data on probabilities of different states happening and the returns of the two risky assets in different states: State Probability Return Asset A Return Asset B State 10.3 7% 14% State 20.4 6% -4% State 30.3 -8% 8% The risk-free rate of return is 2%. (a) Calculate expected returns, variances, standard deviations, covariance, and correlation of returns of the two risky assets. (b) There are...
1. You are working in a financial intermediary and your manager asks you to analyze stocks of two different companies trading on Borsa İstanbul. The first company is called R&H Inc. (RHI) and the second company is called M&L Corp. (MLC). Both of these companies are in consumer's goods industry and founded at the beginning of the 20th century. You do not know what the returns on these company stocks will be for the next year but you have some...
Can I get Help with number two please? DI. JUUSUIINUS Name Ryan Conniff Answer each of the problems below using the information provided and SHOW YOUR WORK FOR ALL PROBLEMS. Use this data for problems 1-2. The annual returns for securities A, B, C, D and the Market (S&P 500) are shown below. Remember to show all calculations. t - A, % B, % C, % D, % Mkt, % 1 18.56 18.23 8.43 12.43 12.28 2 12.34 5.24 3.12...
reproduce the output in p.75 and figure p.77(use Python ) compute the principle ( read the R -code ) and do it on python with figure just convert the code to python I want to do it in Python program, please don't waste my time just tell me exactly you want Table 3.1: headsize data. Head Size Data. 157 195 163 176 146 head1 breadth1 head2 breadth 2 head1 breadth1 head2 breadth 2 191 155 179 145 190 159 195...
MULTIPLE CHOICE: 1. What is the long-run objective of financial management? A. Maximize earnings per share B. Maximize the value of the firm's common stock C. Maximize return on investment D. Maximize market share 2. Which of the following statement (in general) is correct? A. A low receivables turnover is desirable B. The lower the total debt-to-equity ratio, the lower the financial risk for a firm C. An increase in net profit margin with no change in sales or assets means a weaker ROI...
The following ANOVA model is for a multiple regression model with two independent variables: Degrees of Sum of Mean Source Freedom Squares Squares F Regression 2 60 Error 18 120 Total 20 180 Determine the Regression Mean Square (MSR): Determine the Mean Square Error (MSE): Compute the overall Fstat test statistic. Is the Fstat significant at the 0.05 level? A linear regression was run on auto sales relative to consumer income. The Regression Sum of Squares (SSR) was 360 and...