Homework Answers
Portfolio Standard Deviation= Stock A Percentage in Portfolio*Stock A Volatility+Stock B Percentage in Portfolio*Stock B Volatility
Portfolio Standard Deviation= 0.3*0.5+0.7*0.25
Portfolio Standard Deviation= 0.325
Assuming S&P Standard Deviation as 11%
Beta of Stock A in Portfolio= (Portfolio Standard Deviation/S&P Standard Deviation)/ Correlation of Two Stocks
= (0.325/0.11/0.6)
=1.7772
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can you know how to do it please it is corporate finance
u
can do beta...
please answer 6. Calculating a beta coefficient for a single stock Aa Aa Suppose that the...
please answer
6. Calculating a beta coefficient for a single stock Aa Aa Suppose that the standard deviation of returns for a single stock A is σΑ-30%, and the standard deviation of the market return is 얘-10%. If the correlation between stock A and the market is ρΑΜ-0.3, then the stock's beta is Is it reasonable to expect that the volatility of the market portfolio's future expected returns will be greater than the volatility of stock A's returns? O Yes...
please answer 6. Calculating a beta coefficient for a single stock Aa Aa Suppose that the...
please answer
6. Calculating a beta coefficient for a single stock Aa Aa Suppose that the standard deviation of returns for a single stock A is σΑ-30%, and the standard deviation of the market return is 얘-10%. If the correlation between stock A and the market is ρΑΜ-0.3, then the stock's beta is Is it reasonable to expect that the volatility of the market portfolio's future expected returns will be greater than the volatility of stock A's returns? O Yes...
can you olease do it it corporate finance and please explain The table below provides the...
can you olease do it it corporate finance and please
explain
The table below provides the beta and expected return for five stocks. All of these stocks but one lie on the Security Market Line. Determine the alpha of the stock that does not lie on the Security Market Line. Stock 1 Stock 2 Stock 3 Stock 4 Stock 5 Beta 0.3 0.5 0.7 1.0 1.3 Expected 5.11% 9.26% 8.99% 11.9% 14.81% Return 02.03% O 2.39% 1.68% O 2.21% O...
6. Calculating a beta coefficient for a single stock Suppose that the standard deviation of returns...
6. Calculating a beta coefficient for a single stock Suppose that the standard deviation of returns for a single stock A IS A = 25%, and the standard deviation of the market return is on = 15%. If the correlation between stock A and the market is PAM - 0.6, then the stock's beta is prns against the market returns will equal the true value of Is it reasonable to expect that the beta value estimated via the regression of...
2. 3: Risk and Rates of Return: Risk in Portfolio Context Risk and Rates of Return:...
2. 3: Risk and Rates of Return: Risk in Portfolio Context Risk
and Rates of Return: Risk in Portfolio Context The capital asset
pricing model (CAPM) explains how risk should be considered when
stocks and other assets are held . The CAPM states that any stock's
required rate of return is the risk-free rate of return plus a risk
premium that reflects only the risk remaining diversification. Most
individuals hold stocks in portfolios. The risk of a stock held in...
od The capital asset pricing model (CAPM) explains how risk should be considered when stocks and...
od The capital asset pricing model (CAPM) explains how risk should be considered when stocks and other assets are held -Select- The CAPM states that any stock's required rate of return is -Select the risk-free rate of return plus a risk premium that reflects only the risk remaining -Select- diversification. Most individuals hold stocks in portfolios. The risk of a stock held in a portfolio is typically -Select the stock's risk when it is held alone. Therefore, the risk and...
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...
6. Calculating a beta coefficient for a single stock Aa Aa E Suppose that the standard...
6. Calculating a beta coefficient for a single stock Aa Aa E Suppose that the standard deviation of returns for a single stock A is A = 40%, and the standard deviation of the market return is OM = 20%. If the correlation between stock A and the market is PAM = 0.7, then the stock's beta is Is it reasonable to expect that the future expected return for a stock will equal its historical average return over a relatively...
hi how do i solve this csn you please explain to someone who have no clue...
hi how do i solve this csn you please explain to
someone who have no clue step by step please thank you
3.4 Comparing stocks You have the opportunity to invest in either stock A or stock B, and we know the following: Stock A has a standard deviation of 0240, and the correlation between A and the market portfolio is 0.4 Stock B has a standard deviation of 0.3, and the correlation between B and the market portfolio is...
Please show working for all parts. 1. The annual returns of two stocks are given as...
Please show working for all parts.
1. The annual returns of two stocks are given as follows. Year Stock A Stock B 2011 -10% 21% 2012 2013 20% 5% 7% 30% 2014 -5% -3% 2015 2% -8% 2016 9% 25% (a) Estimate the expected return and volatility of each stock. (b) Estimate the covariance and correlation between two stocks. (c) Find the expected returns and volatilities of portfolios that maintain 100.6% investment in Stock A and 100(1-x)% in Stock B,...
please answer
6. Calculating a beta coefficient for a single stock Aa Aa Suppose that the standard deviation of returns for a single stock A is σΑ-30%, and the standard deviation of the market return is 얘-10%. If the correlation between stock A and the market is ρΑΜ-0.3, then the stock's beta is Is it reasonable to expect that the volatility of the market portfolio's future expected returns will be greater than the volatility of stock A's returns? O Yes...
please answer
6. Calculating a beta coefficient for a single stock Aa Aa Suppose that the standard deviation of returns for a single stock A is σΑ-30%, and the standard deviation of the market return is 얘-10%. If the correlation between stock A and the market is ρΑΜ-0.3, then the stock's beta is Is it reasonable to expect that the volatility of the market portfolio's future expected returns will be greater than the volatility of stock A's returns? O Yes...
can you olease do it it corporate finance and please
explain
The table below provides the beta and expected return for five stocks. All of these stocks but one lie on the Security Market Line. Determine the alpha of the stock that does not lie on the Security Market Line. Stock 1 Stock 2 Stock 3 Stock 4 Stock 5 Beta 0.3 0.5 0.7 1.0 1.3 Expected 5.11% 9.26% 8.99% 11.9% 14.81% Return 02.03% O 2.39% 1.68% O 2.21% O...
6. Calculating a beta coefficient for a single stock Suppose that the standard deviation of returns for a single stock A IS A = 25%, and the standard deviation of the market return is on = 15%. If the correlation between stock A and the market is PAM - 0.6, then the stock's beta is prns against the market returns will equal the true value of Is it reasonable to expect that the beta value estimated via the regression of...
2. 3: Risk and Rates of Return: Risk in Portfolio Context Risk
and Rates of Return: Risk in Portfolio Context The capital asset
pricing model (CAPM) explains how risk should be considered when
stocks and other assets are held . The CAPM states that any stock's
required rate of return is the risk-free rate of return plus a risk
premium that reflects only the risk remaining diversification. Most
individuals hold stocks in portfolios. The risk of a stock held in...
od The capital asset pricing model (CAPM) explains how risk should be considered when stocks and other assets are held -Select- The CAPM states that any stock's required rate of return is -Select the risk-free rate of return plus a risk premium that reflects only the risk remaining -Select- diversification. Most individuals hold stocks in portfolios. The risk of a stock held in a portfolio is typically -Select the stock's risk when it is held alone. Therefore, the risk and...
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...
6. Calculating a beta coefficient for a single stock Aa Aa E Suppose that the standard deviation of returns for a single stock A is A = 40%, and the standard deviation of the market return is OM = 20%. If the correlation between stock A and the market is PAM = 0.7, then the stock's beta is Is it reasonable to expect that the future expected return for a stock will equal its historical average return over a relatively...
hi how do i solve this csn you please explain to
someone who have no clue step by step please thank you
3.4 Comparing stocks You have the opportunity to invest in either stock A or stock B, and we know the following: Stock A has a standard deviation of 0240, and the correlation between A and the market portfolio is 0.4 Stock B has a standard deviation of 0.3, and the correlation between B and the market portfolio is...
Please show working for all parts.
1. The annual returns of two stocks are given as follows. Year Stock A Stock B 2011 -10% 21% 2012 2013 20% 5% 7% 30% 2014 -5% -3% 2015 2% -8% 2016 9% 25% (a) Estimate the expected return and volatility of each stock. (b) Estimate the covariance and correlation between two stocks. (c) Find the expected returns and volatilities of portfolios that maintain 100.6% investment in Stock A and 100(1-x)% in Stock B,...
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