Question
help solve please! how to solve with a calculator would be helpful

3. The following table shows the past annual returns for Stock A and Stock B, please find the expected return, standard devia
0 0
Add a comment Improve this question Transcribed image text
Answer #1

calculation of formula expected seturma : ex where, Ex = Sum of Return of Mumber of yours given n = number of years - ExpecteS.) 355.8096 = 8.44 Stock B & Ginen Retum 10.7 25.00 0.38 26.20 11.52 Avg. retum 14.76 14.76 176 14-76 14.76 (x-7) -4.05 10.2Calulation of Expected actum, std. deriation and Variance of portfolio Expected Leturm - Stock A Expected setum a weight A CaCoefficient 21,2 = of Correlation Coraniance 1,2 6,62 Covariance Cori, 2 = {(x-7)(y- Į 0.36 - 10.04 13.36 -7.74 4.06 (y-y -4.e variance of post folio is 2 = 6.84 86.84 = 146.797

Add a comment
Know the answer?
Add Answer to:
help solve please! how to solve with a calculator would be helpful 3. The following table...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The realized returns for stock A and stock B from 2004-2009 are provided in the table...

    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 -9% 21% 6% -4% 3% 10% Stock B 23% 9% 32% -1% -6% 27% (a) Calculate the expected returns (as percents) over the next year for the stocks assuming the average annual realized returns and past volatility from 2004-2009 are unbiased estimators of expected returns and future volatility. stock A 4.5 stock B 14...

  • help solve please! how to solve with a calculator would be helpful 2. As an analyst...

    help solve please! how to solve with a calculator would be helpful 2. As an analyst at Churnem & Bernem Securities, you are responsible for making recommendations to your firm's clients regarding common stocks. After gathering data on Denver Semiconductors, you have found that its dividend has been growing at a rate of 8% per year to the current (D) $1.25 per share. You believe that an appropriate rate of return for this stock is 15% per year. b. If...

  • The realized returns for stock A and stock B from 2004–2009 are provided in the table...

    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 −9% 21% 6% −4% 3% 10% Stock B 19% 5% 28% −5% −10% 23% (a) Calculate the expected returns (as percents) over the next year for the stocks assuming the average annual realized returns and past volatility from 2004–2009 are unbiased estimators of expected returns and future volatility. stock A %stock B % Calculate...

  • help solve please! how to solve with a calculator would be helpful 1. As an investor,...

    help solve please! how to solve with a calculator would be helpful 1. As an investor, you are considering an investment in the bonds of the Conifer Coal Company. The bonds, which pay interest semiannually, wil mature in eight years, and have a coupon rate of 9.5% on a face value of $1,000. Currently, the bonds are selling for $872. a. If you required return is 11% for bonds in this risk class, what is the highest price you would...

  • 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...

  • Consider the following returns: Year End Stock X Realized Return Stock Y Realized Return Stock Z...

    Consider the following returns: Year End Stock X Realized Return Stock Y Realized Return Stock Z Realized Return 2004 20,1% -14,6% 0,2% 2005 72,7% 4,3% -3,2% 2006 -25,7% -58,1% -27,0% 2007 56,9% 71,1% 27,9% 2008 6,7% 17,3% -5,1% 2009 17,9% 0,9% -11,3% The variance on a portfolio that is made up of equal investments in stock Y and stock Z stock is closest to: a) 0,9238 b) 0,0875 c) 0,2958 d) 0,0699

  • Fill in the missing information in the following table. Assume that Portfolio AB IS 60 percent...

    Fill in the missing information in the following table. Assume that Portfolio AB IS 60 percent invested in Stock A. (Round your answer to 2 decimal places. Negative amounts should be indicated by a minus sign. Omit the "%" sign in your response.) Annual Returns on Stocks A and B Stock A Stock B Year Portfolio AB 16% 35% -17% 2006 2007 2008 2009 2010 Avg return Std deviation 24% -35% 45% 17% 25% 15% 27% 16.00% od

  • Please help me with these 3 questions with a picture of your graphing calculator. Thank you!!! 1) Use your graphing calculator to solve the system of equations below. Set your window to-3...

    Please help me with these 3 questions with a picture of your graphing calculator. Thank you!!! 1) Use your graphing calculator to solve the system of equations below. Set your window to-3 Sx$3 and 3 sys 3. Use the intersect feature to calculate the intersection of the two lines. Paste your graph below, making sure the intersection point is clearly labeled. 1-2に7iiii 2) Use your graphing calculator to graph the system of inequalities below. (Hint: You can take care of...

  • The following table, contains annual returns for the stocks of ABC Corp. (ABC) and Company B...

    The following table, contains annual returns for the stocks of ABC Corp. (ABC) and Company B (B). The returns are calculated using end-of-year prices (adjusted for dividends and stock splits) retrieved from http://www.finance.yahoo.com/. Use the information to create an Excel spreadsheet that calculates the standard deviation of annual returns over the 10-year period for ABC, B, and of the equally-weighted portfolio of ABC and B over the 10-year period. (Hint: Review the Excel screenshot on page 173.) The average annual...

  • Please show all work and clear steps as to how you got each solution!! Stocks A...

    Please show all work and clear steps as to how you got each solution!! Stocks A and B have the following historical returns: Year Stock A's returns Stock B's returns 2003 -19.00% - 15.50% 2004 32.00% 23.80% 2005 14.00% 29.50% 2006 -0.50% -8.60% 2007 28.00% 25.30% (a) Calculate the average rate of return and standard deviation of returns (as percents) for each stock during the 5-year period. (Round your standard deviations to two decimal places.) stock A average rate of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT