You observe a portfolio for five years and determine that its average annual return is 13%...
You observe a portfolio for five years and determine that its average annual return is 13% and the standard deviation of its returns is 21%. Can you be 95% confident that this portfolio will not lose more than 30% of its value next year?
Yes
No
Homework Answers
Average return = 13%
Standard deviation = 21%
z-score for 95% confidence interval = 1.96
Low end for 95% prediction interval = Average return - (z score
x SD)
= 13% - (1.96 * 21%)
= 13% - 41.16%
= -28.16%
Low end of the prediction interval is greater than -30%.
Yes, you can be confident that the portfolio will not lose more than 30% of its value next year.
Add Answer to:
You observe a portfolio for five years and determine that its
average annual return is 13%...
You observe a portfolio for five years and determine that its average return is 11.6% and...
You observe a portfolio for five years and determine that its average return is 11.6% and the standard deviation of its returns in 19.5%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is %. (Enter your response as a percent rounded to one decimal place.) O A. No, you cannot be confident that the portfolio will not lose more than 30% of its value next...
You observe a portfolio for five years and determine that its average return is 12.2% and...
You observe a portfolio for five years and determine that its average return is 12.2% and the standard deviation of its returns in 19.2%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is %. (Enter your response as a percent rounded to one decimal place.) O A. Yes, you can be confident that the portfolio will not lose more than 30% of its value next...
Homework help!! You observe a portfolio for five years and determine that its average return is...
Homework help!!
You observe a portfolio for five years and determine that its average return is 12.5% and the standard deviation of its returns in 19.6%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is %. (Enter your response as a percent rounded to one decimal place.) O A. No, you cannot be confident that the portfolio will not lose more than 30% of its...
Dividendo Using the data in the table to the right, calculate the return for investing in...
Dividendo Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $33.03 $32.87 $31.01 $31.11 $39.55 $41.37 $0.18 $0.19 $0.18 $0.17 Return for the entire period is %. (Round to two decimal places.) You observe a portfolio for five years and determine that its average...
6. Using the data in the table to the right, calculate the return for investing in...
6. Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. Date Price Dividend 1/2/03 $32.64 - 2/5/03 $31.49 $0.22 5/14/03 $30.76 $0.18 8/13/03 $32.66 $0.22 11/12/03 $38.52 $0.19 1/2/04 $43.88 - Return for the entire period is __ (Round to two decimal places.) 7. You observe a portfolio for five years and determine that its average return is...
Please show work and all steps! The realized returns for stock A and stock B from...
Please show work and all steps!
The realized returns for stock A and stock B from 2004-2009 are provided in the table below Year 2004 2005 2006 2007 2008 2009 Stock A -8% 22% 7% -3% 4% 11% Stock B 20% 6% 29% -4% -9% 24% Suppose you create a portfolio that is 60% invested in stock A and 40% invested in stock B. The correlation between the returns of the two stocks is 6.27% (a) Calculate the expected return...
5. Over the last twenty years, the average return and standard deviation of returns of large...
5. Over the last twenty years, the average return and standard deviation of returns of large cap value stocks are 8.5% and 15.2%, and the average return and standard deviation of returns of fixed income portfolio are 5.3% and 3.4%. Suppose that over the next year the expected returns and risks of the two asset classes will remain the same as what happened in the last twenty years. Further assume that you can invest in a riskless asset with 2%...
If your portfolio expected annual average total return was 10% and long-term inflation was about 3%,...
If your portfolio expected annual average total return was 10% and long-term inflation was about 3%, what would your REAL average annual returns be with a 100% equity portfolio? 10% 7% 3% 5% If you put your retirement funds in a savings account earning 0.5% and inflation was 3%, how much would you lose in value each year against inflation by not earning more than inflation on your retirement savings? 0.5% less 3% for minus 2.5% 3% 0.5% 10.2%
The geometric average annual return for a large capitalization stock portfolio is 12% for ten years...
The geometric average annual return for a large capitalization stock portfolio is 12% for ten years and 6% per year for the next five years. The geometric average annual return for the entire 15-year period is:
The historical returns on a balanced portfolio have had an average return of 13% and a...
The historical returns on a balanced portfolio have had an average return of 13% and a standard deviation of 16%. Assume that returns on this portfolio follow a normal distribution. [You may find it useful to reference the z table.] a. What percentage of returns were greater than 45%? (Round your answer to 2 decimal places.) b. What percentage of returns were below −35%? (Round your answer to 2 decimal places.)
You observe a portfolio for five years and determine that its average return is 11.6% and the standard deviation of its returns in 19.5%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is %. (Enter your response as a percent rounded to one decimal place.) O A. No, you cannot be confident that the portfolio will not lose more than 30% of its value next...
You observe a portfolio for five years and determine that its average return is 12.2% and the standard deviation of its returns in 19.2%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is %. (Enter your response as a percent rounded to one decimal place.) O A. Yes, you can be confident that the portfolio will not lose more than 30% of its value next...
Homework help!!
You observe a portfolio for five years and determine that its average return is 12.5% and the standard deviation of its returns in 19.6%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is %. (Enter your response as a percent rounded to one decimal place.) O A. No, you cannot be confident that the portfolio will not lose more than 30% of its...
Dividendo Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $33.03 $32.87 $31.01 $31.11 $39.55 $41.37 $0.18 $0.19 $0.18 $0.17 Return for the entire period is %. (Round to two decimal places.) You observe a portfolio for five years and determine that its average...
Please show work and all steps!
The realized returns for stock A and stock B from 2004-2009 are provided in the table below Year 2004 2005 2006 2007 2008 2009 Stock A -8% 22% 7% -3% 4% 11% Stock B 20% 6% 29% -4% -9% 24% Suppose you create a portfolio that is 60% invested in stock A and 40% invested in stock B. The correlation between the returns of the two stocks is 6.27% (a) Calculate the expected return...
5. Over the last twenty years, the average return and standard deviation of returns of large cap value stocks are 8.5% and 15.2%, and the average return and standard deviation of returns of fixed income portfolio are 5.3% and 3.4%. Suppose that over the next year the expected returns and risks of the two asset classes will remain the same as what happened in the last twenty years. Further assume that you can invest in a riskless asset with 2%...
The geometric average annual return for a large capitalization stock portfolio is 12% for ten years and 6% per year for the next five years. The geometric average annual return for the entire 15-year period is:
Most questions answered within 3 hours.
-
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 21 minutes ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 44 minutes ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 1 hour ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 1 hour ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 1 hour ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 1 hour ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 5 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 5 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 6 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 6 hours ago -
When a metal rod is heated, not only its resistance but also its
length and cross‐sectional...
asked 6 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 6 hours ago