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What is the standard deviation of portfolio A? please show
work
State Boom Normal Recession Probability...
What is the covariance and correlation coefficient between portfolios Y and Z? Please show work. Return...
What is the covariance and correlation coefficient between
portfolios Y and Z? Please show work.
Return for Portfolio Z 30% State Boom Normal Recession Probability 30% 40% 30% Return for Portfolio Y 20% 10% -10% 15% -15%
2) What is the expected return and standard deviation of a portfolio that is invested in...
2) What is the expected return and standard deviation of a portfolio that is invested in stocks A, B, and C? Twenty five percent of the portfolio is invested in stock A, 40 percent is invested in stock C, and the remaining is invested in stock B. (20 pts) Probability of State of Economy State of Economy Boom Normal Recession 5% Returns if State Occurs Stock A Stock B Stock C 17% 6% 22% 8% 10% 15% -3% 19% -25%...
Consider the following information: Rate of Return of State Occurs State of Economy Recession Normal Boom...
Consider the following information: Rate of Return of State Occurs State of Economy Recession Normal Boom Probability of State of Economy 20 .60 20 Stock A .03 .08 .14 Stock B - 21 15 35 Calculate the expected return for Stock A. Calculate the expected return for Stock Calculate the standard deviation for Stock A. Calculate the standard deviation for Stock B.
Consider the following scenario analysis: Scenario Recession Normal economy Boom Rate of Return Probability Stocks Bonds...
Consider the following scenario analysis: Rate of ReturnScenarioProbabilityStocksBondsRecession0.20-5%14% Normal economy 0.60158Boom0.20 254Assume a portfolio with weights of .60 in stocks and .40 in bonds. a. What is the rate of return on the portfolio in each scenario? (Do not round percent rounded to 1 decimal place.) Rate of Return Recession Normal economy Boomb. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answer as...
Consider the following information: Probability of State of Economy State of Economy Recession Normal Boom Portfolio...
Consider the following information: Probability of State of Economy State of Economy Recession Normal Boom Portfolio Return If State Occurs - 17 21 46 33 26 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
10. What is the expected return and standard deviation of a portfolio comprised of $7,500 in...
10. What is the expected return and standard deviation of a portfolio comprised of $7,500 in stock M and $5000 in stock N and covariance of M and N is 20%? (20 Points) State of Probability of Returns if State Occurs Economy State of Economy Stock M Stock N Boom 10% 18% 10% Normal 75% 7% 8% Recession 15% -20% 6%
b) calculate the standard deviation of the portfolio. c) calculate the beta of the portfolio. d)...
b) calculate the standard deviation of the portfolio.
c) calculate the beta of the portfolio.
d) is the systematic risk of the portfolio is more or less than
the market?
Question 7 (15 pts): retums for There are three states of economy and you are given the following probabilities and each stock for each state of economy. You invest 30% in stock X and 70% in stock Y. The betas for cach stock are also given below Returns if State...
< 087c3bf05caf46f2ae409104186c6b97.xlsx 6 Q No.3 Economy Recession Normal Good Boom Probability 20% 35% 35% 10% Stocks...
< 087c3bf05caf46f2ae409104186c6b97.xlsx 6 Q No.3 Economy Recession Normal Good Boom Probability 20% 35% 35% 10% Stocks -5% 10% 14% 18% Bonds 15% 12% 11% 9% Part A 1. Calculate expected return and standard deviation of each stock and bonds. 2. Which investment is less risky based on standard deviation? Part B (part B will be solved separately from part A. You can only take data from question number 3 and make portfolio. In case of any problem recheck zoom recording...
State of Economy Probability of State of Economy Rate of Return If State Occurs Stock K...
State of Economy Probability of State of Economy Rate of Return If State Occurs Stock K Stock M Boom 0.10 25% 18% Growth 0.20 10% 20% Normal 0.50 15% 4% Recession 0.20 -12% 0% An individual plans to invest $5,000: $3,000 in Stock K and $2,000 in Stock M. What are the stock weights for this portfolio? (wK = 60%, wM = 40%) Using the weights computed in Part a, what is the expected return for the portfolio? (E(Rp) =...
Consider the following information on a portfolio of three stocks: State of Economy Probability of State of Economy Stock A Rate of Return Stock B Rate of Return Stock C Rate of Return Boom .15 ....
Consider the following information on a portfolio of three stocks: State of Economy Probability of State of Economy Stock A Rate of Return Stock B Rate of Return Stock C Rate of Return Boom .15 .05 .21 .18 Normal .80 .08 .15 .07 Recession .05 .12 -.22 -.02 The portfolio is invested 35 percent in each Stock A and Stock B and 30 percent in Stock C. If the expected T-bill rate is 3.90 percent, what is the expected risk...
What is the covariance and correlation coefficient between
portfolios Y and Z? Please show work.
Return for Portfolio Z 30% State Boom Normal Recession Probability 30% 40% 30% Return for Portfolio Y 20% 10% -10% 15% -15%
2) What is the expected return and standard deviation of a portfolio that is invested in stocks A, B, and C? Twenty five percent of the portfolio is invested in stock A, 40 percent is invested in stock C, and the remaining is invested in stock B. (20 pts) Probability of State of Economy State of Economy Boom Normal Recession 5% Returns if State Occurs Stock A Stock B Stock C 17% 6% 22% 8% 10% 15% -3% 19% -25%...
Consider the following information: Rate of Return of State Occurs State of Economy Recession Normal Boom Probability of State of Economy 20 .60 20 Stock A .03 .08 .14 Stock B - 21 15 35 Calculate the expected return for Stock A. Calculate the expected return for Stock Calculate the standard deviation for Stock A. Calculate the standard deviation for Stock B.
Consider the following scenario analysis: Rate of ReturnScenarioProbabilityStocksBondsRecession0.20-5%14% Normal economy 0.60158Boom0.20 254Assume a portfolio with weights of .60 in stocks and .40 in bonds. a. What is the rate of return on the portfolio in each scenario? (Do not round percent rounded to 1 decimal place.) Rate of Return Recession Normal economy Boomb. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answer as...
Consider the following information: Probability of State of Economy State of Economy Recession Normal Boom Portfolio Return If State Occurs - 17 21 46 33 26 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
10. What is the expected return and standard deviation of a portfolio comprised of $7,500 in stock M and $5000 in stock N and covariance of M and N is 20%? (20 Points) State of Probability of Returns if State Occurs Economy State of Economy Stock M Stock N Boom 10% 18% 10% Normal 75% 7% 8% Recession 15% -20% 6%
b) calculate the standard deviation of the portfolio.
c) calculate the beta of the portfolio.
d) is the systematic risk of the portfolio is more or less than
the market?
Question 7 (15 pts): retums for There are three states of economy and you are given the following probabilities and each stock for each state of economy. You invest 30% in stock X and 70% in stock Y. The betas for cach stock are also given below Returns if State...
< 087c3bf05caf46f2ae409104186c6b97.xlsx 6 Q No.3 Economy Recession Normal Good Boom Probability 20% 35% 35% 10% Stocks -5% 10% 14% 18% Bonds 15% 12% 11% 9% Part A 1. Calculate expected return and standard deviation of each stock and bonds. 2. Which investment is less risky based on standard deviation? Part B (part B will be solved separately from part A. You can only take data from question number 3 and make portfolio. In case of any problem recheck zoom recording...
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