9. The standard deviation of Home Depot share prices is 30% and that of General Motors...
9. The standard deviation of Home Depot share prices is 30% and that of General Motors shares is 30%. When I hold both stocks in my portfolio, the overall volatility of the portfolio is:
a. 30%
b. 26%
c. 28%
d. More information needed.
Homework Answers
Since correlation of portfolio between General Motors and Home
Depot is not given. Overall Portfolio cannot be calculated.
Option d . More information needed i
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9. The standard deviation of Home Depot share prices is 30% and
that of General Motors...
The volatility of Home Depot share prices is 45% and that of General Motors shares is...
The volatility of Home Depot share prices is 45% and that of General Motors shares is 30% When I hold both stocks in my portfolio the overall volatility of the portfolio O A. 41% OB. 43% OC. 45% OD. more information needed estion stions
Suppose that the standard deviation of returns from a typical share is about 0.40 (or 40%)...
Suppose that the standard deviation of returns from a typical share is about 0.40 (or 40%) a year. The correlation between the returns of each pair of shares is about 0.3. a. Calculate the variance and standard deviation of the returns on a portfolio that has equal investments in 2 shares, 3 shares, and so on, up to 10 shares. b. Use your estimates to draw a graph of the variance on the y-axis and the number of shares on...
The following table provides the expected return and the standard deviation of returns for srocks and...
The following table provides the expected return and the
standard deviation of returns for srocks and gold. Your client is
currently holding a portfolio of stocks and he is considering
whether he should replace half of the stocks with gold.
.
Question 1 Part a) The following table provides the expected return and the standard deviation of returns for stocks and gold. Your client is currently holding a portfolio of stocks and he is considering whether he should replace haif...
For Dell, suppose its mean and standard deviation are 10% and 20%. For IBM, suppose its...
For Dell, suppose its mean and standard deviation are 10% and 20%. For IBM, suppose its mean and standard deviation are 6% and 15%. Their correlation coefficient is 0.25. The risk-free rate is 2%. The optimal risky portfolio consists of 40% in IBM and 60% in Dell. [Note: This is an important exercise to obtain some intuition about CAPM. However, neither the formulas in Part 2 nor the algebraic proof in Part 5 are required for this course. If I...
THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS February 3, 2019 January 28, 2018 in millions, except per share data A...
THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS February 3, 2019 January 28, 2018 in millions, except per share data Assets Current assets: Cash and cash equivalents 1,778 $ 3,595 Receivables, net 1,936 1,952 Merchandise inventories 13,925 12,748 Other current assets 890 638 Total current assets 18,529 18,933 22,375 Net property and equipment 22,075 Goodwill 2,252 2,275 Other assets 847 1,246 Total assets 44,003 44,529 Liabilities and Stockholders' Equity Current liabilities: 1,339 $ Short-term debt $ 1,559 Accounts payable Accrued salaries...
P8-13 (similar to) Question Help Portfolio return and standard deviation Personal Finance Problem Jamie Wong is...
P8-13 (similar to) Question Help Portfolio return and standard deviation Personal Finance Problem Jamie Wong is thinking of building an investment portfolio containing two stocks, L and M. Stock Lwill represent 75% of the dollar value of the portfolio, and stock M will account for the other 25%. The historical returns over the next 6 years, 2013 - 2018, for each of these stocks are shown in the following table: a. Calculate the actual portfolio return, fp, for each of...
What is the expected standard deviation of stock A’s returns based on the information presented in...
What is the expected standard deviation of stock A’s returns based on the information presented in the table? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. Note that figures in the table are presented in decimal format, not as percentages. Outcome Probability of outcome Stock A return in outcome Good 0.3 0.4 Medium 0.4 0.1 Bad ? -0.4 Rogelio’s portfolio is worth 73,600 dollars and has...
Find the sample variance and standard deviation : 7 11 23 28 29 30 31 38...
Find the sample variance and standard deviation : 7 11 23 28 29
30 31 38 51 55
Here is what I keep getting:
What am I doing wrong?
Homework: Section 3.2 Save Score: 0.5 of 1 pt 2 of 9 (2 complete) HW Score: 16.67%, 1.5 of 9 pts 3.2.9 Question Help Find the sample variance and standard deviation 7, 55, 11, 51,38, 23,29, 31, 30, 28 Choose the correct answer below. Fill in the answer box to complete...
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...
1. Jerry is a district manager for Home Depot and he recently implemented a new safety...
1. Jerry is a district manager for Home Depot and he recently implemented a new safety program in the 8 stores he manages. He would like to know if this new program has resulted in fewer accidents than other Home Depot stores. Jerry knows that the average number of accidents at any Home Depot is 4.2 a month with a standard deviation of 1.1. Jerry’s has the following accident data for his 8 stores. Use a single-sample z-test to determine...
The volatility of Home Depot share prices is 45% and that of General Motors shares is 30% When I hold both stocks in my portfolio the overall volatility of the portfolio O A. 41% OB. 43% OC. 45% OD. more information needed estion stions
The following table provides the expected return and the
standard deviation of returns for srocks and gold. Your client is
currently holding a portfolio of stocks and he is considering
whether he should replace half of the stocks with gold.
.
Question 1 Part a) The following table provides the expected return and the standard deviation of returns for stocks and gold. Your client is currently holding a portfolio of stocks and he is considering whether he should replace haif...
For Dell, suppose its mean and standard deviation are 10% and 20%. For IBM, suppose its mean and standard deviation are 6% and 15%. Their correlation coefficient is 0.25. The risk-free rate is 2%. The optimal risky portfolio consists of 40% in IBM and 60% in Dell. [Note: This is an important exercise to obtain some intuition about CAPM. However, neither the formulas in Part 2 nor the algebraic proof in Part 5 are required for this course. If I...
THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS February 3, 2019 January 28, 2018 in millions, except per share data Assets Current assets: Cash and cash equivalents 1,778 $ 3,595 Receivables, net 1,936 1,952 Merchandise inventories 13,925 12,748 Other current assets 890 638 Total current assets 18,529 18,933 22,375 Net property and equipment 22,075 Goodwill 2,252 2,275 Other assets 847 1,246 Total assets 44,003 44,529 Liabilities and Stockholders' Equity Current liabilities: 1,339 $ Short-term debt $ 1,559 Accounts payable Accrued salaries...
P8-13 (similar to) Question Help Portfolio return and standard deviation Personal Finance Problem Jamie Wong is thinking of building an investment portfolio containing two stocks, L and M. Stock Lwill represent 75% of the dollar value of the portfolio, and stock M will account for the other 25%. The historical returns over the next 6 years, 2013 - 2018, for each of these stocks are shown in the following table: a. Calculate the actual portfolio return, fp, for each of...
Find the sample variance and standard deviation : 7 11 23 28 29
30 31 38 51 55
Here is what I keep getting:
What am I doing wrong?
Homework: Section 3.2 Save Score: 0.5 of 1 pt 2 of 9 (2 complete) HW Score: 16.67%, 1.5 of 9 pts 3.2.9 Question Help Find the sample variance and standard deviation 7, 55, 11, 51,38, 23,29, 31, 30, 28 Choose the correct answer below. Fill in the answer box to complete...
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