Homework Answers
Probability that the stock will lose at least half its value is given as equal to=NORMDIST(-50%,9.8%,15.4%,TRUE)=0.00005
Option B
Add Answer to:
A stock has an expected rate of return of 9.8 percent and a standard deviation of...
A portfolio has average return of 13.2 percent and standard deviation of returns of 18.9 percent....
A portfolio has average return of 13.2 percent and standard deviation of returns of 18.9 percent. Assuming that the portfolioi's returns are normally distributed, what is the probability that the portfolio's return in any given year is between -24.6 percent and 32.1 percent? A. 0.815 B. 0.835 ос C. 0.950 D. 0.975 A portfolio has expected return of 13.2 percent and standard deviation of 18.9 percent. Assuming that the returns of the portfolio are normally distributed, what is the probability...
Stock A has an expected return of 11 percent, a beta of 0.9, and a standard deviation of 15 perce...
Stock A has an expected return of 11 percent, a beta of 0.9, and a standard deviation of 15 percent Stock B also has a beta of 0.9, but its expected returm is 9 percent and its standard deviation is 13 percent. Portfolio AB has $900,000 invested in Stock A and $300,000 invested in Stock B. The correlation between the two stocks' returns is zero. Which of the following statements is CORRECT? Select one O a.I am not sure b....
Two-stock Portfolio Stock A has an expected return of 12.50 percent and a standard deviation of...
Two-stock Portfolio Stock A has an expected return of 12.50 percent and a standard deviation of 25.50 percent. Stock B has an expected return of 7.25 percent and a standard deviation of 30.45 percent. The correlation coefficient between Stock A and B is 0.23. The optimal weight of Stock A in a portfolio consisting of these two stocks is estimated to be _ , and the standard deviation of this portfolio is estimated to be Select one: O a. 61.35%;...
The stock market of country A has an expected return of 5 percent, and a standard...
The stock market of country A has an expected return of 5 percent, and a standard deviation of expected return of 8 percent. The stock market of country B has an expected return of 15 percent and a standard deviation of expected return of 10 percent.Calculate the expected return of a portfolio that is half invested in A and half in B.
A stock has an expected return of 12 percent and a standard deviation of 20 percent....
A stock has an expected return of 12 percent and a standard deviation of 20 percent. Long-term Treasury bonds have an expected return of 9 percent and a standard deviation of 15 percent. Given this data, which of the following statements is correct? Group of answer choices Both investments have the same diversifiable risk. The two assets have the same coefficient of variation. The bond investment has a better risk-return trade-off. The stock investment has a better risk-return trade-off.
Given the following: Stock A Expected return= 0.28, standard deviation = 0.40 Stock B Expected return=...
Given the following: Stock A Expected return= 0.28, standard deviation = 0.40 Stock B Expected return= 0.16, standard deviation = 0.25 If stock A and stock B have a positive correlation of 0.48, which portfolio represent the minimum variance portfolio? Weight of Stock A in the minimum variance portfolio: _____ Weight of Stock B in the minimum variance portfolio: _____ The expected return and standard deviation of this minimum variance portfolio: ______ and ________ show all formulas and calculations please
Consider two stocks, Stock D, with an expected return of 20 percent and a standard deviation...
Consider two stocks, Stock D, with an expected return of 20 percent and a standard deviation of 36 percent, and Stock I, an international company, with an expected return of 6 percent and a standard deviation of 16 percent. The correlation between the two stocks is –0.01. What are the expected return and standard deviation of the minimum variance portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected Return? Standard deviation?
An asset has an average return of 11.15 percent and a standard deviation of 22.89 percent....
An asset has an average return of 11.15 percent and a standard deviation of 22.89 percent. What is the most you should expect to lose in any given year with a probability of 16 2 percent? Multiple Choice -34.63% -34.04% -23.19% -11.74% -5752%
Stock X has an expected return of 7 percent, a standard deviation of returns of 28...
Stock X has an expected return of 7 percent, a standard deviation of returns of 28 percent, a correlation coefficient with the market of –0.5, and a beta coefficient of –0.6. Stock Y has an expected return of 14 percent, a standard deviation of 15 percent, a 0.7 correlation with the market, and a beta of 0.9. Which security would be riskier if it were held by itself as a single investment? a. Stock Y b. Both would be equally...
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 portfolio has average return of 13.2 percent and standard deviation of returns of 18.9 percent. Assuming that the portfolioi's returns are normally distributed, what is the probability that the portfolio's return in any given year is between -24.6 percent and 32.1 percent? A. 0.815 B. 0.835 ос C. 0.950 D. 0.975 A portfolio has expected return of 13.2 percent and standard deviation of 18.9 percent. Assuming that the returns of the portfolio are normally distributed, what is the probability...
Stock A has an expected return of 11 percent, a beta of 0.9, and a standard deviation of 15 percent Stock B also has a beta of 0.9, but its expected returm is 9 percent and its standard deviation is 13 percent. Portfolio AB has $900,000 invested in Stock A and $300,000 invested in Stock B. The correlation between the two stocks' returns is zero. Which of the following statements is CORRECT? Select one O a.I am not sure b....
Two-stock Portfolio Stock A has an expected return of 12.50 percent and a standard deviation of 25.50 percent. Stock B has an expected return of 7.25 percent and a standard deviation of 30.45 percent. The correlation coefficient between Stock A and B is 0.23. The optimal weight of Stock A in a portfolio consisting of these two stocks is estimated to be _ , and the standard deviation of this portfolio is estimated to be Select one: O a. 61.35%;...
An asset has an average return of 11.15 percent and a standard deviation of 22.89 percent. What is the most you should expect to lose in any given year with a probability of 16 2 percent? Multiple Choice -34.63% -34.04% -23.19% -11.74% -5752%
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...
Most questions answered within 3 hours.
-
When UV light of wavelength 288 nm falls on a metal surface, the
maximum kinetic energy...
asked 8 minutes ago -
Your company has just brought in a new line of products... And
they are pieces of...
asked 11 minutes ago -
in three paragraphs or more discuss the role of the U.S.
Children’s Bureau in dealing with...
asked 11 minutes ago -
Place the following salts in order of increasing water
solubility:
i. Fe(OH)2 Ksp = 7.9 ×...
asked 14 minutes ago -
If inflation is increasing at 2.6 percent per year, and your
salary increases at the same...
asked 14 minutes ago -
An aspirin dose of 5.0mg per kg of body weight has been
prescribed to reduce the...
asked 21 minutes ago -
The AASB Conceptual Framework (2.12-2.19) refers to ‘faithful
representation’ as being necessary for financial information to...
asked 26 minutes ago -
A U.S. corporation with net receivables in euro could hedge by
_________________.
A. buying euro forward...
asked 27 minutes ago -
Consider the following reversible reaction: CO2 +
H2O <--> H2CO3.In which
direction (right or left) will...
asked 30 minutes ago -
Which of the following probabilities indicates a relationship
that is not statistically significant?
Group of answer...
asked 31 minutes ago -
QUESTION 8
Which layer of the TCP/IP hierarchy presents incoming messages
to the computer user?
a....
asked 39 minutes ago -
A solenoid a cross-sectional area of 5.4x10^-4 m^2, consists of
540 turns per meter, and carries...
asked 49 minutes ago