If I have a portfolio that is 1/3 A and 2/3 B and A has a...
If I have a portfolio that is 1/3 A and 2/3 B and A has a mean of 9 and a variance of 3, and B has a mean of 6 and a variance of 1, and the two have a covariance of ‐1, find the variance of the portfolio.
Round your answer to 2 decimal places. For example if your answer is 0.666, then please write down 0.67.
Homework Answers
hope it helpsIf I have a portfolio that is 1/3 A and 2/3 B and A has a...
If I have a portfolio that is 1/3 A and 2/3 B and A has a mean of 9 and a variance of 3, and B has a mean of 6 and a variance of 1, and the two have a covariance of ‐1, find the expected return of this portfolio.
I need the Firm-specific and the Covariance please Suppose that the index model for stocks A...
I need the Firm-specific and the Covariance please
Suppose that the index model for stocks A and B is returns with the following resi RA - 1.58% .SSR Re -1.403. B.GR O = 18; R-square -8.25 Assume you create portfolio Pwith Investment proportions of 0.60 in A and 0 40 in B a. What is the standard deviation of the portfolio? (Do not round your intermediate calculations Round your answer places.) Answer is complete and correct 17.58 b. What is...
A trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per...
A trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. If the maintenance margin requirement is 50%, below what stock price will she receive a margin call? Round your answer to 2 decimal places. For example if your answer is 0.666, then please write down 0.67.
2. Portfolio Choice Suppose we have assets A and B with the following distribution of returns:...
2. Portfolio Choice Suppose we have assets A and B with the following distribution of returns: Probability Return for A .01 Return for B -.14 .00 .03 TO .05 .07 14 .30 .09 .50 a. Compute the expected returns for assets A and B, rA and rg. b. Compute the variances of A and B, oả and oß. c. Compute the covariance of A and B, CAR- d. Use the formulas for portfolio returns and risk to write the expected...
A client has a 9.7-year investment horizon. Construct a portfolio with the following two bonds for this investor to hel...
A client has a 9.7-year investment horizon. Construct a portfolio with the following two bonds for this investor to help protect against interest rate risk. What is the weight to put on bond B in this portfolio? Macaulay duration 6.0 Bond A Bond B 13.3 Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
An investor owns a portfolio consisting of two mutual funds, A and B, with 60% invested in A. The following table lists...
An investor owns a portfolio consisting of two mutual funds, A
and B, with 60% invested in A. The following table lists the inputs
for these funds.
An investor owns a portfolio consisting of two mutual funds, A and B, with 60% invested in A. The following table lists the inputs for these funds. Fund B Fund A 30 Measures Expected value Variance Covariance 24 49 87 36 a. Calculate the expected value for the portfolio return. (Round your answer...
The standard deviation of the market-index portfolio is 30%. Stock A has a beta of 1.50 and a res...
The standard deviation of the market-index portfolio is 30%. Stock A has a beta of 1.50 and a residual standard deviation of 40%. a-1. Calculate the total variance for an increase of 0.10 in its beta? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Total variance 0.3904 a-2 Calculate the total variance for an increase of 3.35% in its residual standard deviation? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Total variance...
Please provide simple explanation 6 The historical returns on a balanced portfolio have had an average...
Please provide simple explanation
6 The historical returns on a balanced portfolio have had an average return of 10% and a standard deviation of 11%. 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 43%? (Round your answer to 2 decimal places.) 5.33 points Percentage of returns 1.30: % eBook References b. What percentage of returns were below -1%? (Round your...
You can form a portfolio of two assets, A and B, whose retums have the following...
You can form a portfolio of two assets, A and B, whose retums have the following characteristics Expected Retum 9% Standard 29% 45 .3 17 a. lf you demand an expected return of 15%, what are the portfolio wei hts? Do not round intermediate calculations. Round your answers to 3 decimal places.) Stock" "Portfolio Weight- b. What is the portfolio's standard deviation? (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answer as a percent...
3. For n 2 2, let X have n-dimensional normal distribution MN(i, V). For any 1...
3. For n 2 2, let X have n-dimensional normal distribution MN(i, V). For any 1 3 m < n, let X1 denote the vector consisting of the last n - m coordinates of X < n, let 1 (a). Find the mean vector and the variance-covariance matrix of X1. (b). Show that Xi is a (n- m)-dimensional normal random vector.
I need the Firm-specific and the Covariance please
Suppose that the index model for stocks A and B is returns with the following resi RA - 1.58% .SSR Re -1.403. B.GR O = 18; R-square -8.25 Assume you create portfolio Pwith Investment proportions of 0.60 in A and 0 40 in B a. What is the standard deviation of the portfolio? (Do not round your intermediate calculations Round your answer places.) Answer is complete and correct 17.58 b. What is...
2. Portfolio Choice Suppose we have assets A and B with the following distribution of returns: Probability Return for A .01 Return for B -.14 .00 .03 TO .05 .07 14 .30 .09 .50 a. Compute the expected returns for assets A and B, rA and rg. b. Compute the variances of A and B, oả and oß. c. Compute the covariance of A and B, CAR- d. Use the formulas for portfolio returns and risk to write the expected...
A client has a 9.7-year investment horizon. Construct a portfolio with the following two bonds for this investor to help protect against interest rate risk. What is the weight to put on bond B in this portfolio? Macaulay duration 6.0 Bond A Bond B 13.3 Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
An investor owns a portfolio consisting of two mutual funds, A
and B, with 60% invested in A. The following table lists the inputs
for these funds.
An investor owns a portfolio consisting of two mutual funds, A and B, with 60% invested in A. The following table lists the inputs for these funds. Fund B Fund A 30 Measures Expected value Variance Covariance 24 49 87 36 a. Calculate the expected value for the portfolio return. (Round your answer...
The standard deviation of the market-index portfolio is 30%. Stock A has a beta of 1.50 and a residual standard deviation of 40%. a-1. Calculate the total variance for an increase of 0.10 in its beta? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Total variance 0.3904 a-2 Calculate the total variance for an increase of 3.35% in its residual standard deviation? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Total variance...
Please provide simple explanation
6 The historical returns on a balanced portfolio have had an average return of 10% and a standard deviation of 11%. 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 43%? (Round your answer to 2 decimal places.) 5.33 points Percentage of returns 1.30: % eBook References b. What percentage of returns were below -1%? (Round your...
You can form a portfolio of two assets, A and B, whose retums have the following characteristics Expected Retum 9% Standard 29% 45 .3 17 a. lf you demand an expected return of 15%, what are the portfolio wei hts? Do not round intermediate calculations. Round your answers to 3 decimal places.) Stock" "Portfolio Weight- b. What is the portfolio's standard deviation? (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answer as a percent...
3. For n 2 2, let X have n-dimensional normal distribution MN(i, V). For any 1 3 m < n, let X1 denote the vector consisting of the last n - m coordinates of X < n, let 1 (a). Find the mean vector and the variance-covariance matrix of X1. (b). Show that Xi is a (n- m)-dimensional normal random vector.
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