A. -5 %
B. 5.59%
C. 12.5%
D. 25%
A. -5 % B. 5.59% C. 12.5% D. 25% Consider an economy with two types of...
Consider an economy with two types of firms, S and I. S firms always move together, but I firms move independently of each other. For both types of firms there is a 50% probability that the firm will have a 20% return and a 50% probability that the firm will have a -30% return. The standard deviation for the return on an portfolio of 20 type S firms is closest to:
Consider an economy with two types of firms, S and I. S firms always move together, but I firms move independently of each other. For both types of firms there is a 20% probability that the firm will have a 20% retum and a 80% probability that the firm will have a - 30% retum. The standard deviation for the return on an individual firm is closest to: O A. 8% OB. 10% O C. 20% OD. -20%
Consider an economy with two types of firms, S and I. S firms all move together. I firms move independently. For both types of firms, there is a 59 % probability that the firm will have a 24 % return and a 41 % probability that the firm will have a - 20 % return. What is the volatility (standard deviation) of a portfolio that consists of an equal investment in: a. 36 firms of type S? b. 36 firms...
Consider an economy with two types of firms, S and I. S firms all move together. I firms move independently. For both types of firms, there is a 60% probability that the firms will have a 15% return and a 40% probability that the firms will have a −10% return. What is the volatility (standard deviation) of a portfolio that consists of an equal investment in 20 firms of (a) type S, and (b) type I? My Question: Finding Standard...
4. Suppose that a stock gave a realized return of 20% over a two-year time period and a 10% return over the third year. The geometric average annual return is ________. (2 points) A) 8.28% B) 12.43% C) 14.08% D) 16.57% 5. Bear Stearns' stock price closed at $98, $103, $58, $29, $4 over five successive weeks. The weekly standard deviation of the stock price calculated from this sample is ________. (2 points) A) $30.07 B) $49.40 C) $42.96 D)...
Consider the following information: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C Boom 0.25 14% 15% 33% Bust 0.75 12% 3% -6% What is the expected return and standard deviation of returns on an equally weighted portfolio of these three stocks? 2. Consider the following information: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock K Stock M Boom 0.10 25% 18%...
Returns and standard deviation- Consider the following information: State of economy Probability of state of economy Rate of return if state occurs Stock A Stock B Stock C Boom .75 .07 .01 .27 Bust .25 .12 .19 -.05 a. What is the expected return on an equally weighted portfolio of these 3 stocks? b. What is the variance of a portfolio invested 20% in each in A and B and 60% in C?
Consider the following information: State of Economy Probability of State of Economy Rate of Rtn Stock A Rate of Rtn Stock B Rate of Rtn Stock C Boom .20 .24 .45 .33 Good .35 .09 .10 .15 Poor .30 .03 -.10 -.05 Bust .15 -.05 -.25 -.09 a. Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? b. What is the variance of this portfolio?...
Consider the following information: Rate of Return If State Occurs State of Economy Stock B Boom Good Poor Bust Probability of State of Economy .20 .50 .25 .05 Stock A .31 .18 -04 .41 .12 -.07 -27 Stock C .32 .11 -05 --.08 -15 a. Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected return of the portfolio? (Do not round Intermediate calculations and enter your answer as a...
Returns and Standard Deviations - Consider the following information: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C Boom .10 .35 .45 .27 Good .60 .16 .10 .08 Poor .25 −.01 −.06 −.04 Bust .05 −.12 −.20 −.09 Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? What is the variance of this portfolio?...