2.
=(w1*s1)^2+(w2*s2)^2+2*w1*w2*s1*s2*correl
=(30%*28%)^2+(70%*24%)^2+2*30%*70%*28%*24%*0.35
=0.0451584
Problem 10 Intro Stock 1 has an expected return of 7% and a standard deviation of...
Problem 11 Intro Stock 1 has an expected return of 17% and a standard deviation of 28%. Stock 2 has an expected return of 9% and a standard deviation of 15%. Their correlation is 0.32. Part 1 Attempt 5/5 for 6 pts. What is the minimum standard deviation that is achievable by combining both stocks? 3+ decima Submit
Problem 14 Intro Apple stock had a return of 11%two years ago, and 22% last year. Google stock had a return of 12% two years ago, and 13% last year. Attempt 1/10 for 10 pts. Part 1 lf you invest 30% in Apple and 70% in Google, what is the expected return of your portfolio for next year, if you use the past as a guide for the future (which is generally not a good idea for calculating expected returns)?...
Problem 14 44ゆ Intro Apple stock had a return of 11%two years ago, and 22% last year. Google stock had a return of 12% two years ago, and 13% last year. Attempt 1/10 for 10 pts Part 1 Ifyou invest 30% in Apple and 70% in Google, what is the expected return of your porttolo for next year, if you use the past as a guide for the future (which is generally not a good idea for calculating expected returns)?...
Assume an investment manager is considering to invest in a portfolio composed of Stock (A) and Stock (B). Stock (A) has an expected return of 10% and a Variance of 100 (Standard Deviation=10), while Stock (B) has an expected return of 20% and a Variance of 900 (Standard deviation=30).1- Calculate the expected return and variance of the portfolio if the proportion invested in Sock (A) is (0, .2, .3,.5. .6,.7,1) .The Correlation Coefficient is .4.2- If the Correlation Coefficient is...
Problem 3 Intro The return statistics for two stocks and T-bills are given below: B C D T- 2 Expected return 3 Variance 4 Standard deviation 5 Covariance Stock A Stock B bills 0.094 0.064 0.02 0.1225 0.0729 0.35 0.27 0.02835 Part 1 | Attempt 1/10 for 10 pts. What is the Sharpe ratio of a portfolio with 70% invested in stock A and the rest in stock B? B+ decima Submit
1. Bonds have an expected return of 7% and an annual standard deviation of 10% and the stock market has an expected return of 12% and an annual standard deviation of 25%. Assume that the correlation between bond returns and stock returns is 0.5. You choose to invest 75% in stock market and 25% in bonds. The expected annual return of your portfolio is ____________% 2. Bonds have an expected return of 7% and an annual standard deviation of 10%...
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...
Problem 19 Intro Assume that the CAPM holds. One stock has an expected return of 10% and a beta of 0.3. Another stock has an expected return of 14% and a beta of 1.5. IB Attempt 4/10 for 5 pts. Part 1 What is the expected return on the market? 3+ decimals Submit
Intro Assume that there are only two stocks in the economy, stock A and stock B. The risk-free asset has a return of 3%. The optimal risky portfolio, i.e., the portfolio with the highest Sharpe ratio, is given below: A BC Stock A Stock B Risk-free asset 2 Expected return 0.062 0.075 0.03 3 Variance 0.1521 0.0484 4 Standard deviation 0.39 0.22 5 Covariance 0.02574 D Optimal risky portfolio 8 Weights 9 Expected return 10 Variance 11 Standard deviation 12...
Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the market of -0.3, and a beta coefficient of -0.5. Stock B has an expected return of 12% a standard deviation of returns of 10%, a 0.7 correlation with the market, and a beta coefficient of 1.0. Which security is riskier? Why? 1. Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a...