Homework Answers
Expected return of portfolio=(wt of A* return on A)+(wt on
B*return on B)
std of portfolio=((wt of A^2*std of A^2)+(wt of B^2*std of
B^2)+(2*wt of a*wt of B*corr(A,B)* std A*std B))^0.5
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1. The two-asset case Aa Aa The expected return for asset A is 8.75%...
1. The two-asset case Aa Aa The expected return for asset A is 7.75% with a...
1. The two-asset case Aa Aa The expected return for asset A is 7.75% with a standard deviation of 4.00%, and the expected return for asset B is 7.00% with a standard deviation of 8.00% 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 Expected Portfolio Return Standard Deviation Op (%) Case I Case II Case III WA...
1. The two-asset case The expected return for asset Als 5.50% with a standard deviation of...
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...
6. Calculating a beta coefficient for a single stock Aa Aa E Suppose that the standard...
6. Calculating a beta coefficient for a single stock Aa Aa E Suppose that the standard deviation of returns for a single stock A is A = 40%, and the standard deviation of the market return is OM = 20%. If the correlation between stock A and the market is PAM = 0.7, then the stock's beta is Is it reasonable to expect that the future expected return for a stock will equal its historical average return over a relatively...
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
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...
1. Expected return and standard deviation Aa Aa Wilson holds a two-stock portfolio that invests equally...
1. Expected return and standard deviation Aa Aa Wilson holds a two-stock portfolio that invests equally in Kelevra Industries and Old Glory Insurance Company (50% of his portfolio is in each stock). Each stock's expected return for the next year will depend on market conditions. The stocks' expected returns if there are poor, average, or great market conditions are shown below State of Probability of Kelevra Old Glory Economy State of Economy Industries Insurance Co Poor Average Great 0.25 0.50...
Portfolio 1- calculate the expected return, variance and standard deviation of asset A 4.8%, Asset B...
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...
letter b please 3. Consider two stocks, A and B, with their expected returns and standard...
letter b please
3. Consider two stocks, A and B, with their expected returns and standard deviations, as follows: Stock Expected return Standard deviation 15% 10 10% What is the expected retum if the portfolio contains equal amounts of each security? What is the standard deviation for the equally weighted portfolio in a) if the correlation between the security retums is i) Cor +1.00. ii) Cors+0.50, and iii) Corras - -0.50? a) 12.5%; b) i. 9%; ii. 7.81%; iii. 4.58%
Expected Return of Asset 1 = 10% Expected Return of Asset 2 = 15% The standard...
Expected Return of Asset 1 = 10% Expected Return of Asset 2 = 15% The standard deviation of Asset 1's return = The standard deviation of Asset 2's 3% return = 5% The proportion of the capital invested in Asset The proportion of the capital invested in 1 = 30% Asset 2 = 70% Calculate the standard deviation of the portfolio consisting of these two assets when the correlation coefficient between Asset 1 and Asset 2 is 0.40. Select one:...
please answer 6. Calculating a beta coefficient for a single stock Aa Aa Suppose that the...
please answer
6. Calculating a beta coefficient for a single stock Aa Aa Suppose that the standard deviation of returns for a single stock A is σΑ-30%, and the standard deviation of the market return is 얘-10%. If the correlation between stock A and the market is ρΑΜ-0.3, then the stock's beta is Is it reasonable to expect that the volatility of the market portfolio's future expected returns will be greater than the volatility of stock A's returns? O Yes...
please answer 6. Calculating a beta coefficient for a single stock Aa Aa Suppose that the...
please answer
6. Calculating a beta coefficient for a single stock Aa Aa Suppose that the standard deviation of returns for a single stock A is σΑ-30%, and the standard deviation of the market return is 얘-10%. If the correlation between stock A and the market is ρΑΜ-0.3, then the stock's beta is Is it reasonable to expect that the volatility of the market portfolio's future expected returns will be greater than the volatility of stock A's returns? O Yes...
1. The two-asset case Aa Aa The expected return for asset A is 7.75% with a standard deviation of 4.00%, and the expected return for asset B is 7.00% with a standard deviation of 8.00% 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 Expected Portfolio Return Standard Deviation Op (%) Case I Case II Case III WA...
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...
6. Calculating a beta coefficient for a single stock Aa Aa E Suppose that the standard deviation of returns for a single stock A is A = 40%, and the standard deviation of the market return is OM = 20%. If the correlation between stock A and the market is PAM = 0.7, then the stock's beta is Is it reasonable to expect that the future expected return for a stock will equal its historical average return over a relatively...
1. Expected return and standard deviation Aa Aa Wilson holds a two-stock portfolio that invests equally in Kelevra Industries and Old Glory Insurance Company (50% of his portfolio is in each stock). Each stock's expected return for the next year will depend on market conditions. The stocks' expected returns if there are poor, average, or great market conditions are shown below State of Probability of Kelevra Old Glory Economy State of Economy Industries Insurance Co Poor Average Great 0.25 0.50...
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...
letter b please
3. Consider two stocks, A and B, with their expected returns and standard deviations, as follows: Stock Expected return Standard deviation 15% 10 10% What is the expected retum if the portfolio contains equal amounts of each security? What is the standard deviation for the equally weighted portfolio in a) if the correlation between the security retums is i) Cor +1.00. ii) Cors+0.50, and iii) Corras - -0.50? a) 12.5%; b) i. 9%; ii. 7.81%; iii. 4.58%
Expected Return of Asset 1 = 10% Expected Return of Asset 2 = 15% The standard deviation of Asset 1's return = The standard deviation of Asset 2's 3% return = 5% The proportion of the capital invested in Asset The proportion of the capital invested in 1 = 30% Asset 2 = 70% Calculate the standard deviation of the portfolio consisting of these two assets when the correlation coefficient between Asset 1 and Asset 2 is 0.40. Select one:...
please answer
6. Calculating a beta coefficient for a single stock Aa Aa Suppose that the standard deviation of returns for a single stock A is σΑ-30%, and the standard deviation of the market return is 얘-10%. If the correlation between stock A and the market is ρΑΜ-0.3, then the stock's beta is Is it reasonable to expect that the volatility of the market portfolio's future expected returns will be greater than the volatility of stock A's returns? O Yes...
please answer
6. Calculating a beta coefficient for a single stock Aa Aa Suppose that the standard deviation of returns for a single stock A is σΑ-30%, and the standard deviation of the market return is 얘-10%. If the correlation between stock A and the market is ρΑΜ-0.3, then the stock's beta is Is it reasonable to expect that the volatility of the market portfolio's future expected returns will be greater than the volatility of stock A's returns? O Yes...
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