Homework Answers
| Portfolio A | |||
| Scenario | Probability | Return% | =rate of return% * probability |
| Scenario 1 | 0.22 | -4 | -0.88 |
| Scenario 2 | 0.46 | 17 | 7.82 |
| Scenario 3 | 0.32 | 23 | 7.36 |
| Expected return %= | sum of weighted return = | 14.3 |
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Computing the expected rate o return and risk After a tumultuous period in the stock market...
a. The expected rate of return for portfolio A is: The standard deviation of portfolio A is: b. The expected rate of ret...
a. The expected rate of return for portfolio A is:
The standard deviation of portfolio A is:
b. The expected rate of return for portfolio B is:
The standard deviation for portfolio B is:
(Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment in one of two portfolios. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and...
a. The expected rate of return for portfolio A is The standard deviation of portfolio A...
a. The expected rate of return for portfolio A is
The standard deviation of portfolio A is
a. The expected rate of return for portfolio B is
The standard deviation of portfolio B is
Score: 0 of 1 pt | 4 of 9 (2 complete) HW Score: 22.22%, 2 of 9 pts P8-7 (similar to) :& Question Help (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment...
compute standard dev of portfoilio A compute expected rate of return for B compute standard dev...
compute standard dev of portfoilio A
compute expected rate of return for B
compute standard dev of B
Computing the expected rate of return and risk Aber a tumous period in the stock market Logan Morgan is considering an veter in one of the portions Given the normation that w based on risk measured by the standard deviation and retums measured by the expected of Question Help hich invest Portfolio A Probability Return Portfolio Probability Return a. The expected rate...
(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two...
(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 10% 0.35 0.25 -4% 14% 7% 0.30 0.25 16% 0.35 20% 0.25 23% 0.25 %. (Round to two decimal places.) a. Given the information in the table, the expected rate of...
1. The risk free rate is currently 3%, market return is 9% Rate of return Standard...
1. The risk free rate is currently 3%, market return is 9% Rate of return Standard deviation of return Beta Portfolio A 14.8% 13% 1.4 Portfolio B 13.6% 12.50% 1.3 a. Calculate the Sharpe's ratio for the two portfolios (4 marks) b. Calculate the Treynor's ratio for the two portfolios (4 marks) c. Calculate the Jensen's measure for the two portfolios (4 marks) d. On the basis of your previous findings, which portfolio has better performance? (2 marks)
Ch 02: Assignment - Risk and Return: Part 1 Term Answer Risk A Expected rate of...
Ch 02: Assignment - Risk and Return: Part 1 Term Answer Risk A Expected rate of return B Description The rate of return expected to be realized from an investment, calculated as the mean of the probability distribution of its possible returns. The term applied to the risk of an asset that is measured by the standard deviation of the asset's expected returns. The possibility that an actual outcome will be better or worse than its expected outcome The general...
Describe and illustrate the expected relationship between risk and expected return based on security market line...
Describe and illustrate the expected relationship between risk and expected return based on security market line (SML) Hwang DBS Bhd has identified three potential stocks to buy in FBM KLCU but will only pick two to be added in the portfolio. The following information has been collected: AirAsia Daya Material Muhibbah Engineering Expected return 12% 25% 18% Standard deviation of return 2.2 5.9 3.4 Covariances of returns between companies AirAsia and Daya Material 8.2 AirAsia and Muhibbah Engineering 2.5 Daya...
Question1 Describe and illustrate the expected relationship between risk and expected return based on security market...
Question1 Describe and illustrate the expected relationship between risk and expected return based on security market line (SML) (7mark) Hwang DBS Bhd has identified three potential stocks to buy in FBM KLCU but will only pick two to be added in the portfolio. The following information has been collected: AirAsia Daya Material Muhibbah Engineering Expected return 12% 25% 18% Standard deviation of return 2.2 5.9 3.4 Covariances of returns between companies AirAsia and Daya Material 8.2 AirAsia and Muhibbah...
The market portfolio has expected return of 12% and risk of 18%. The risk free rate...
The market portfolio has expected return of 12% and risk of 18%. The risk free rate is 3%. According to CML, if you want to achieve 15% return, how much risk does your portfolio has to have?
Use the following yearly rate of return valoes for Questions 1, 2, 3, and4. Market Risk-frre...
Use the following yearly rate of return valoes for Questions 1, 2, 3, and4. Market Risk-frre Year Stock A Stock B Stock C retura return 2008 9.0% 8.0% 11.0% 10.0% 1.0% 2009 10.0% 11.0% 3.0% 9.0% 10% 2010 -3.0% 6.0% -6.0% 8.0% 10% 2011 -3.0% -110% -11.0% -15.0% 1.0n% 2012 9.0 % 3.0% 6.% 6.0% 10% 2013 -8.0% -4.0% -2.0% 20% 10% 2014 11.0% 15.% 13.0% 6.0% 10% -2.0% 10% 2015 -9.0% -5.0% -5.0% 2016 3.0% 1.0% 10.0% 14.0% 14.0%...
a. The expected rate of return for portfolio A is:
The standard deviation of portfolio A is:
b. The expected rate of return for portfolio B is:
The standard deviation for portfolio B is:
(Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment in one of two portfolios. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and...
a. The expected rate of return for portfolio A is
The standard deviation of portfolio A is
a. The expected rate of return for portfolio B is
The standard deviation of portfolio B is
Score: 0 of 1 pt | 4 of 9 (2 complete) HW Score: 22.22%, 2 of 9 pts P8-7 (similar to) :& Question Help (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment...
compute standard dev of portfoilio A
compute expected rate of return for B
compute standard dev of B
Computing the expected rate of return and risk Aber a tumous period in the stock market Logan Morgan is considering an veter in one of the portions Given the normation that w based on risk measured by the standard deviation and retums measured by the expected of Question Help hich invest Portfolio A Probability Return Portfolio Probability Return a. The expected rate...
(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 10% 0.35 0.25 -4% 14% 7% 0.30 0.25 16% 0.35 20% 0.25 23% 0.25 %. (Round to two decimal places.) a. Given the information in the table, the expected rate of...
1. The risk free rate is currently 3%, market return is 9% Rate of return Standard deviation of return Beta Portfolio A 14.8% 13% 1.4 Portfolio B 13.6% 12.50% 1.3 a. Calculate the Sharpe's ratio for the two portfolios (4 marks) b. Calculate the Treynor's ratio for the two portfolios (4 marks) c. Calculate the Jensen's measure for the two portfolios (4 marks) d. On the basis of your previous findings, which portfolio has better performance? (2 marks)
Ch 02: Assignment - Risk and Return: Part 1 Term Answer Risk A Expected rate of return B Description The rate of return expected to be realized from an investment, calculated as the mean of the probability distribution of its possible returns. The term applied to the risk of an asset that is measured by the standard deviation of the asset's expected returns. The possibility that an actual outcome will be better or worse than its expected outcome The general...
Use the following yearly rate of return valoes for Questions 1, 2, 3, and4. Market Risk-frre Year Stock A Stock B Stock C retura return 2008 9.0% 8.0% 11.0% 10.0% 1.0% 2009 10.0% 11.0% 3.0% 9.0% 10% 2010 -3.0% 6.0% -6.0% 8.0% 10% 2011 -3.0% -110% -11.0% -15.0% 1.0n% 2012 9.0 % 3.0% 6.% 6.0% 10% 2013 -8.0% -4.0% -2.0% 20% 10% 2014 11.0% 15.% 13.0% 6.0% 10% -2.0% 10% 2015 -9.0% -5.0% -5.0% 2016 3.0% 1.0% 10.0% 14.0% 14.0%...
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