Homework Answers
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The benefits of portfolio diversification are highest when the individual securities within the portfolio have returns that are less than perfectly correlated with the rest of the portfolio i.e. are largely uncorrelated with the rest of the portfolio. In other words, the stocks in a portfolio should have coefficient correlation lesser than 1. |
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QUESTION 14 The bervefits of portfolio diversification are highest when the individual securities win the path...
Question 9 Other things equal, diversification is most effective when Securities' returns are positively correlated. Securities'...
Question 9 Other things equal, diversification is most effective when Securities' returns are positively correlated. Securities' returns are high. Both sicurities' returns are positively correlated and securities' returns are high. You hold equal proportions of each security in a portfolio. Securities returns are uncorrelated.
98) Which of the following statements is FALSE A) The volatility declines as the number of stocks in a portfolio grows. B) An equally weighted portfolio is a porfolio in which the same amount is...
98) Which of the following statements is FALSE A) The volatility declines as the number of stocks in a portfolio grows. B) An equally weighted portfolio is a porfolio in which the same amount is invested in eadh stock C) As the number of stocks in a portfolio grows large, the variance of the portfolio is determined primarily by the average covariance among the stocks D) When combining stocks into a portfolio that puts positive weight on each stock, unless...
Other things equal, when adding new securities to a portfolio, the lower (less positive) the correlation...
Other things equal, when adding new securities to a portfolio, the lower (less positive) the correlation between the new securities and those already in the portfolio, the less the additional portfolio diversification. True False Question 7 (4 points) Consider the following portfolio: Stock Investment Expected Return А $400000 16% B $200000 12% C $800000 18% $300000 16% The expected rate of return for the portfolio is: Your Answer:
Question 27 (Mandatory) (1 point) When the correlation coefficient between the returns of two securities is...
Question 27 (Mandatory) (1 point) When the correlation coefficient between the returns of two securities is zero, an investor can still receive benefits from diversifying from combining both securities and the standard deviation of a portfolio consisting of both securities would lower than the weighted sum of the individual securities' standard deviations. True False Question 28 (Mandatory) (1 point) While the individual investor always chooses his/her 'normal' position along the CAL in accordance with his/her level of risk aversion, the...
Question 4(14 marks) What is the risk premium of a zero-beta stock?Does this mean you can...
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MULTIPLE CHOICE 1) Which of the following is NOT an investment as defined in the text?...
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Question 1 3 pts Winston Corporation is evaluating a new project that will require an increase...
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Question 1 1 pts What is the kinetic energy of a man who weighs 980N who...
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Read the article below and in your own words, (1-2 sentences) what is the "true direction"...
Read the article below and in your own words, (1-2 sentences) what is the "true direction" or right way to interpret nature, according to Bacon? True Directions Concerning the Interpretation of Nature (1620) Francis Bacon Those who have taken it on themselves to lay down the law of nature as something that has already been discovered and understood, whether they have spoken in simple confidence or in a spirit of professional posturing, have done great harm to philosophy and the...
Please read the article bellow and discuss the shift in the company's approach to genetic analysis....
Please read the article bellow and discuss the shift in the
company's approach to genetic analysis. Please also discuss what
you think about personal genomic companies' approaches to research.
Feel free to compare 23andMe's polices on research with another
company's. Did you think the FDA was right in prohibiting 23andMe
from providing health information?
These are some sample talking points to get you thinking about
the ethics of genetic research in the context of Big Data. You
don't have to...
Question 9 Other things equal, diversification is most effective when Securities' returns are positively correlated. Securities' returns are high. Both sicurities' returns are positively correlated and securities' returns are high. You hold equal proportions of each security in a portfolio. Securities returns are uncorrelated.
98) Which of the following statements is FALSE A) The volatility declines as the number of stocks in a portfolio grows. B) An equally weighted portfolio is a porfolio in which the same amount is invested in eadh stock C) As the number of stocks in a portfolio grows large, the variance of the portfolio is determined primarily by the average covariance among the stocks D) When combining stocks into a portfolio that puts positive weight on each stock, unless...
Other things equal, when adding new securities to a portfolio, the lower (less positive) the correlation between the new securities and those already in the portfolio, the less the additional portfolio diversification. True False Question 7 (4 points) Consider the following portfolio: Stock Investment Expected Return А $400000 16% B $200000 12% C $800000 18% $300000 16% The expected rate of return for the portfolio is: Your Answer:
Question 27 (Mandatory) (1 point) When the correlation coefficient between the returns of two securities is zero, an investor can still receive benefits from diversifying from combining both securities and the standard deviation of a portfolio consisting of both securities would lower than the weighted sum of the individual securities' standard deviations. True False Question 28 (Mandatory) (1 point) While the individual investor always chooses his/her 'normal' position along the CAL in accordance with his/her level of risk aversion, the...
Question 1 3 pts Winston Corporation is evaluating a new project that will require an increase in accounts receivable of $80,000, an increase in inventory of $250,000, and an increase in accounts payable of $160,000. The change in networking capital for this project will be: $330,000 $170,000 +$170,000 -$490,000 MACRS Depreciation Allowances Property Class Year 3-Year 5-Year 7-Year 33.33% 20.00% 14.29% 44.45 32.00 24.49 14.81 19.20 17.49 11.52 12.49 11.52 8.93 5.76 8.92 7.41 8.93 4.46 Question 2 3 pts...
Question 1 1 pts What is the kinetic energy of a man who weighs 980N who is riding in a car traveling 40 km per hour? Express your answer in Joules, but don't type the unit in the answer box. Round to the nearest whole number. (Careful with the units) 1 pts Astudent slides her 80.0-kg desk across the level floor of her dormitory room a distance 4.00 m at constant speed. If the coefficient of kinetic friction between the...
Please read the article bellow and discuss the shift in the
company's approach to genetic analysis. Please also discuss what
you think about personal genomic companies' approaches to research.
Feel free to compare 23andMe's polices on research with another
company's. Did you think the FDA was right in prohibiting 23andMe
from providing health information?
These are some sample talking points to get you thinking about
the ethics of genetic research in the context of Big Data. You
don't have to...
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