Homework Answers
Add Answer to:
2. The returns of two stocks and one bond in 4 possible states of economies are...
Question 11 Amelie considers investing in one stock and one bond. The following table lists the...
Question 11 Amelie considers investing in one stock and one bond. The following table lists the returns on the two assets in three different scenarios and the probability of each scenario occurring. Bond Scenario Probability Stock Recession -5% 50% 6% Normal 30% 10% 2% 20% Boom 20% 0% Amelie decided to form an equally-weighted portfolio by investing 50% of her wealth in the stock and 50% of her wealth in the bond. a) What is the expected return of Amelie's...
Consider the following information for three stocks, A, B, and C. The stocks' returns are positively...
Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positively correlated with one another, i.e., the correlations are all between O and 1 ExpectedStandard Stock Retum Deviation Beta 1.0 10% 1.0 1.4 10% B10% 12% 20% 12% Portfolio AB has half of its funds invested in Stock A and half in Stock B. Portfolio ABC has one third of its funds invested in each of the three stocks. The risk-free...
Problem 2 Intro We know the following expected returns for stocks A and B.glven different states...
Problem 2 Intro We know the following expected returns for stocks A and B.glven different states of the economy: 0.04 State (s) Probability E(ra) Ers,s) Recession 0.2 -0.1 Normal 0.5 0.08 0.05 Expansion 0.3 0.18 0.07 - Attempt 1/5 for 10 pts. Part 1 What is the expected return for stock A? 3+ decimals Submit Attempt 175 for 10 pts. Part 2 What is the expected return for stock B? Submit Problem 9 Intro You have $100,000 to invest and...
An analyst has predicted the following returns for Stock A and Stock B in three possible...
An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. State Probability A Boom Normal Recession 0.24 0.27 0.49 0.16 0.20 0.10 0.17 0.25 a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability 0.26 b. Calculate the expected return for Stock A and Stock B. (Round your answers to 2 decimal places) Expected Return Stocks A Stocks B c. Calculate the expected return...
An analyst has predicted the following returns for Stock A and Stock B in three possible...
An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy State Probabili Boom Normal Recession 0.25 .24 0.27 0.49 0.160.20 0.10 0.17 a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability 0.26 b. Calculate the expected return for Stock A and Stock B. (Round your answers to 2 decimal places Expected Return Stocks A Stocks B C. Calculate the expected return for a...
You have predicted the following returns for stocks A and B in three possible states of...
You have predicted the following returns for stocks A and B in three possible states of nature What is expected return for stock A? State Probability A Boom 01 0.20 0.30 Normal 0.4 0.10 0.20 Recesion 0.5 0.05 0.07 Select one: a 95% b. 8.7% 10.5% d. 8.5%
You have predicted the following returns for stocks A and B in three possible states of...
You have predicted the following returns for stocks A and B in three possible states of nature. What is expected return for stock A? State Probability A B Boom 0.1 0.20 0.30 Normal 0.4 0.10 0.20 Recesion 0.5 0.05 0.07 Select one: a. 8.5% b. 10.5% c. 8.7% d. 9.5%
calculate the standard deviation 1. Stock A has the following returns for various states of the...
calculate the standard deviation
1. Stock A has the following returns for various states of the economy: State of the Economy Recession Below Average Average Above Average Boom Probability 10% 20% 40% 20% 10% Stock A's Return -30% -2% 10% 18% 40%
2. (Options) Consider a world with two stocks (S, and S) and two possible states. The...
2. (Options) Consider a world with two stocks (S, and S) and two possible states. The stocks can be purchased in period t. In the first state, which happens with probability 0.5 the stocks can be sold in t + 1 for 20 and 10 dollars respectively. In state 2, the stocks can be sold in t+1 for 5 and 25 respectively. i) What combination of assets will secure a selling price int+ 1 for the portfolio of 15? ii)...
6. You have estimated returns of Twitter and Apple under different economic states. If you create...
6. You have estimated returns of Twitter and Apple under different economic states. If you create a portfolio (TwitApple) with 50% of your money in Apple and 50% in Twitter, what is the expected return of your portfolio TwitApple? (Portfolio Expected Return) Probability 0.1 0.2 Economic State Recession Below Average Normal Above Average Boom Rate of return Twitter -40% -20% 10% 40% 60% Apple -15% -5% 8% 16% 20% 0.3 0.3 for tritter
Question 11 Amelie considers investing in one stock and one bond. The following table lists the returns on the two assets in three different scenarios and the probability of each scenario occurring. Bond Scenario Probability Stock Recession -5% 50% 6% Normal 30% 10% 2% 20% Boom 20% 0% Amelie decided to form an equally-weighted portfolio by investing 50% of her wealth in the stock and 50% of her wealth in the bond. a) What is the expected return of Amelie's...
Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positively correlated with one another, i.e., the correlations are all between O and 1 ExpectedStandard Stock Retum Deviation Beta 1.0 10% 1.0 1.4 10% B10% 12% 20% 12% Portfolio AB has half of its funds invested in Stock A and half in Stock B. Portfolio ABC has one third of its funds invested in each of the three stocks. The risk-free...
Problem 2 Intro We know the following expected returns for stocks A and B.glven different states of the economy: 0.04 State (s) Probability E(ra) Ers,s) Recession 0.2 -0.1 Normal 0.5 0.08 0.05 Expansion 0.3 0.18 0.07 - Attempt 1/5 for 10 pts. Part 1 What is the expected return for stock A? 3+ decimals Submit Attempt 175 for 10 pts. Part 2 What is the expected return for stock B? Submit Problem 9 Intro You have $100,000 to invest and...
An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. State Probability A Boom Normal Recession 0.24 0.27 0.49 0.16 0.20 0.10 0.17 0.25 a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability 0.26 b. Calculate the expected return for Stock A and Stock B. (Round your answers to 2 decimal places) Expected Return Stocks A Stocks B c. Calculate the expected return...
An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy State Probabili Boom Normal Recession 0.25 .24 0.27 0.49 0.160.20 0.10 0.17 a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability 0.26 b. Calculate the expected return for Stock A and Stock B. (Round your answers to 2 decimal places Expected Return Stocks A Stocks B C. Calculate the expected return for a...
You have predicted the following returns for stocks A and B in three possible states of nature What is expected return for stock A? State Probability A Boom 01 0.20 0.30 Normal 0.4 0.10 0.20 Recesion 0.5 0.05 0.07 Select one: a 95% b. 8.7% 10.5% d. 8.5%
calculate the standard deviation
1. Stock A has the following returns for various states of the economy: State of the Economy Recession Below Average Average Above Average Boom Probability 10% 20% 40% 20% 10% Stock A's Return -30% -2% 10% 18% 40%
2. (Options) Consider a world with two stocks (S, and S) and two possible states. The stocks can be purchased in period t. In the first state, which happens with probability 0.5 the stocks can be sold in t + 1 for 20 and 10 dollars respectively. In state 2, the stocks can be sold in t+1 for 5 and 25 respectively. i) What combination of assets will secure a selling price int+ 1 for the portfolio of 15? ii)...
6. You have estimated returns of Twitter and Apple under different economic states. If you create a portfolio (TwitApple) with 50% of your money in Apple and 50% in Twitter, what is the expected return of your portfolio TwitApple? (Portfolio Expected Return) Probability 0.1 0.2 Economic State Recession Below Average Normal Above Average Boom Rate of return Twitter -40% -20% 10% 40% 60% Apple -15% -5% 8% 16% 20% 0.3 0.3 for tritter
Most questions answered within 3 hours.
-
Write a program to solve the Josephus problem, with the following
modification:
Sample Input:
./a.out n...
asked 2 hours ago -
At the start of a CD it is spinning at a rate of 525 rpm
(revolutions...
asked 3 hours ago -
4. Without doing any calculations, predict whether the observed
∆T would increase, decrease or remain the...
asked 4 hours ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 5 hours ago -
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 5 hours ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 5 hours ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 6 hours ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 6 hours ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 6 hours ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 6 hours ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 6 hours ago -
Why are polymers not typically casted into products?
asked 7 hours ago