1. Given the following information estimate the monthly expected return of a portfolio of 40% AAA and 60% BBB. Assume you purchase these shares in July 2018. Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals.
2. Given the following information estimate the standard deviation of a portfolio of 40% AAA and 60% BBB monthly returns.
Stock Price | Stock Price | |
Month | AAA | BBB |
Jan-18 | 100 | 75 |
Feb-18 | 120 | 80 |
Mar-18 | 140 | 95 |
Apr-18 | 110 | 100 |
May-18 | 115 | 85 |
Jun-18 | 95 | 90 |
Jul-18 | 100 | 100 |
For AAA:
Average stock price = (100 + 120 + 140 + 110 + 115 + 95 + 100) / 7 = 111.42
For BBB:
Average stock price = (75 + 80 + 95 + 100 + 85 + 90 + 100) / 7 = 89.28
If investing 100 each in AAA and BBB, in July 2018, monthly expected return is calculated as
(0.4 * 111.42) + (0.6 * 89.28) = 44.57 + 53.57 = 98.14
100 - 98.14 = 1.86
Hence the monthly expected return is -1.86
1. Given the following information estimate the monthly expected return of a portfolio of 40% AAA...
Given the following information estimate the monthly expected return of a portfolio of 40% AAA and 60% BBB. Assume you purchase these shares in July 2018. Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals. Stock Price Month AAA BBB Jan-18 100 75 Feb-18 120 80 Mar-18 140 95 Apr-18 110 100 May-18 115 85 Jun-18 95 90 Jul-18 100 100
Given the following information A. Estimate the monthly expected return of the AAA stock. B. Estimate the standard deviation of BBB stock’s monthly returns C. Estimate the monthly expected return of a portfolio of 40% AAA and 60% BBB. Assume you purchase these shares in July 2018 D. Estimate the standard deviation of a portfolio of 40% AAA and 60% BBB monthly returns Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals....
Given the following information estimate the standard deviation of a portfolio of 40% AAA and 60% BBB monthly returns. Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals. Stock Price Month AAA BBB Jan-18 100 75 Feb-18 120 80 Mar-18 140 95 Apr-18 110 100 May-18 115 85 Jun-18 95 90 Jul-18 100 100
Given the following information estimate the standard deviation of a portfolio of 40% AAA and 60% BBB monthly returns. Enter your answer as a percent. Do not include the 9% sign. Round your final answer to two decimals Stock Price Month AAA BBB Jan-18 100 75 Feb-18 120 80 140 95 Mar-18 110 Apr-18 100 May-18 85 115 Jun-18 95 90 Jul-18 100 100
Given the following information estimate the monthly expected return of the AAA stock. Enter your answer as a percent. Round your final answer to two decimals. Estimate the standard deviation of BBB stock’s monthly returns. Enter your answer as a percent Stock Price Month AAA BBB Jan-18 100 75 Feb-18 120 80 Mar-18 140 95 Apr-18 110 100 May-18 115 85 Jun-18 95 90 Jul-18 100 100
Given the following information estimate the monthly expected return of the AAA stock. Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals. Stock Price Month AAA BBB Jan-18 100 75 Feb-18 120 80 Mar-18 140 95 Apr-18 110 100 May-18 115 85 Jun-18 95 90 Jul-18 100 100
Given the following information estimate the monthly expected return of a portfolio of 40% AAA and 60% BBB. Assume you purchase these shares in July 2018. Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals. Stock Price Month |ААА Jan-18 100 75 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 100
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