Company B has a standard deviation of 6.3, and an expected return of 10%.
What is the coefficient of variation for company B?
Coefficient of variation = Standard deviation / Expected return
Coefficient of variation = 0.063 / 0.10
Coefficient of variation = 0.63 or 63%
Company B has a standard deviation of 6.3, and an expected return of 10%. What is...
EXTRA RISK PROBLEMS Stock A Stock B Expected Return 10% 1 Standard Deviation Beta Correlation coefficient with the Market Correlation coefficient with Stock B Risk free rate 25% Expected return on the Market 12% Standard deviation of the Market 18 1. What is the expected return on a portfolio comprised of $6000 of Stock A and S4000 of Stock B? 2. What is the Standard deviation of this portfolio? 3. Does it make sense to combine these two in this...
Find the (a) expected return, (b) standard deviation and (c) coefficient of variation for these investments A and B. RA Prob. 20% 0.40 10% 0.3 -2% 0.30 A's expected return, standard deviation, and coefficient of variation are: 7%, 12.6%, 1.87 O 8%, 12.5%, 1.56 8%,1.6%, 0.2
Asset A has an expected return of 26% and a standard deviation of 18% Asset has an expected return of 22% and a standard deviation of 16%. What is the coefficient of variation for Asset A? carry to four decimal places
EXTRA RISK PROBLEMS Stock A Stock B Expected Return 10% 16% Standard Deviation Correlation coefficient with the Market Correlation coefficient with Stock B Risk free rate 25% Expected return on the Market 12% Standard deviation of the Market 18 1. What is the expected return on a portfolio comprised of $6000 of Stock A and $4000 of Stock B? 2. What is the Standard deviation of this portfolio? 3. Does it make sense to combine these two in this way?...
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...
Asset A has an expected return of 15% and Asset B has an expected return of 12%. Based on a probability distribution, the standard deviation for Asset A is 10% and the standard deviation for Asset B is 5%. a.) Based only on the standard deviation, which investment is less risky? Discuss your reasons for your selection including why you feel that asset is less risky. b.) Calculate the coefficient of variation for each asset and post your answers. Based...
Stock A has an expected return of 7%, a standard deviation of expected returns at 35%, a correlation coefficient with the market of -.3, and a beta coefficient of -.5. Stock B has an expected return of 12%, a standard deviation of 10%, and a .7 correlation with the market, and a beta coefficient of 1.0 . Which security is riskier? why?
a.
What are the expected value and standard deviation for the rate
of return on assets?
b.
What is the expected rate of growth under risk?
c.
What are the standard deviation (risk) and coefficient of
variation of the expected rate of growth?
3. Nancy and Dave currently have $700,000 in assets and $260,000 in liabilities. Their average cost of debt is fixed at 7%. Their consumption and tax rates are 40% and 30%, respectively. Taxes are based on returns...
Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the market of 20.3, and a beta coefficient of 20.5. 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?
Yaris Fund has the following statistics: Expected return = 25% and Standard deviation = 30%. The Market’s Expected return is 12% with a Standard Deviation of 22.5%. The Risk Free rate is 5%. What is Yaris Fund’s Coefficient of Variation? A). 1.200 B). 0.833 C). 0.533 D). 0.667 What is Yaris Fund’s Sharpe Ratio? A). 1.200 B). 0.833 C). 0.533 D). 0.667