Eric Poppovich invests money in two stocks for the upcoming year. His investment is shown below: STOCK: # of shares Price Per Share Expected Return Standard Deviation LBJ Corporation (A) 42.00 $39.52 5.00% 19.00% Duncan Inc. (B) 29.00 $53.75 10.00% 22.00% The correlation between LBJ and Duncan is 0.50. What is the standard deviation of the portfolio?
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Eric Poppovich invests money in two stocks for the upcoming year. His investment is shown below:...
Eric Poppovich invests money in two stocks for the upcoming year. His investment is shown below: STOCK: # of shares Price Per Share Expected Return Standard Deviation LBJ Corporation (A) 48.00 $36.31 5.00% 20.00% Duncan Inc. (B) 29.00 $50.49 9.00% 22.00% The correlation between LBJ and Duncan is 0.50. What is the expected return for the portfolio in the coming year?
Eric Poppovich Iinvests money in two stocks for the upcoming year. STOCK: LBJ Corporation (A) Duncan Inc. (B) The correlation between LBJ and Duncan is 0.50 His investment is shown below Expected Return Standard Deviation 20.00% 24.00% # of Shares 46.00 25.00 Price Per Share 36.75 $51.78 5.000% 9.00% What is the expected return for the portfolio in the coming year? Answer Format Percentage Round to: 2 decimal places (Example: 924%. % sign required. Will accept decimal format rounded to...
a. If Mary invests half her money in each of the two
commonstocks, what is the portfolio's expected rate of return and
standard deviation in portfolio return?
b. Answer part a where the correlation between the two common
stock investments is equal to zero.
c. Answer part a where the correlation between the two common
stock investments is equal to plus+1.
d. Answer part a where the correlation between the two common
stock investments is equal to minus−1.
e. Using...
a. If Mary invests half her money in each of the two common
stocks, what is the portfolio's expected rate of return and
standard deviation in portfolio return?
b. Answer part a where the correlation between the two common
stock investments is equal to zero.
c. Answer part a where the correlation between the two common
stock investments is equal to +1
d. Answer part a where the correlation between the two common
stock investments is equal to -1
e....
Ebenezer Scrooge has invested 40% of his money in share A and the remainder in share B. He assesses their prospects as follows: A 18 Expected return (%) Standard deviation (3) Correlation between returns 21 0.5 a. What are the expected return and standard deviation of returns on his portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 19.80 % Expected return Standard deviation b. How would your answer change if the...
increase/decrease
12. Portfolio beta and weights Eric is an analyst at a wealth management firm. One of his clients holds a $7,500 portfolio that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table: Investment Allocation Standard Deviation Stock Atteric Inc. (AI) Beta 0.750 35% 0.53% 20% 1.500 0.57% Arthur Trust Inc(AT) 0.60% Lobster Supply Corp. (LSC) Transfer Fuels Co. (TF) 15% 30% 1.100 0.500...
Chris Wade makes an investment in the following two companies: STOCK: # of shares Current Price Per Share Coca-Cola (KO) 65.00 $58.02 Home Depot (HD) 47.00 $61.34 The expected return on the portfolio is 12.00% in the coming year. What is the weight of Coca-Cola (Ticker symbol: KO) in his portfolio? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) #18 An investor builds...
1. Expected return and standard deviation Aa Aa Wilson holds a two-stock portfolio that invests equally in Kelevra Industries and Old Glory Insurance Company (50% of his portfolio is in each stock). Each stock's expected return for the next year will depend on market conditions. The stocks' expected returns if there are poor, average, or great market conditions are shown below State of Probability of Kelevra Old Glory Economy State of Economy Industries Insurance Co Poor Average Great 0.25 0.50...
9. (Market portfolio, CML) In the Golkoland stock market, there are only two listed stocks, Xirkind and Yirkind. The risk-free rate of return in Golkoland is 5%, and the portfolio of Xirkind and Yirkind stocks which has the highest Sharpe ratio is given below: A C 3 Average return 4 Variance of returns 5 Standard deviation 6 Covariance of returns 7 Correlation 8 Risk-free return B DE Xirkind Yirkind 19.84% 15.38% 0.1575 0.1378 39.68% 37.12% <-- SQRT(C4)! -0.0110 -0.0747 <--...
P8-13 (similar to) Question Help Portfolio return and standard deviation Personal Finance Problem Jamie Wong is thinking of building an investment portfolio containing two stocks, L and M. Stock Lwill represent 75% of the dollar value of the portfolio, and stock M will account for the other 25%. The historical returns over the next 6 years, 2013 - 2018, for each of these stocks are shown in the following table: a. Calculate the actual portfolio return, fp, for each of...