PLEASE ANSWER PART (c) USING
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PLEASE ANSWER PART (c) USING
EXCEL
I III 6. The following table contains the probability distribution...
PLEASE ANSWER THE QUESTION USING EXCEL AND SHOW ALL THE WORK AND FOMRULAS USED IN EXCEL....
PLEASE ANSWER THE QUESTION USING EXCEL AND SHOW ALL THE WORK AND FOMRULAS USED IN EXCEL. 5% 33% 6. The following table contains the probability distribution for the returns of three securities over the next year. Expected Returns Scenario Probability -17% .9% 11% 17% 7% 14% 25% 19% 29% 27% 34% -17% 35% 44% -27% a) Determine the expected return and standard deviation of each security. b) Calculate a variance and covariance matrix for these four securities using the given...
PART III RISK AND RETURN Cell for "2" State of the Economy Worst case Poor case...
PART III RISK AND RETURN Cell for "2" State of the Economy Worst case Poor case Most likely Good case Best case Return on Probability Treasury of Bond in Occurrence Upcoming Year 0.10 -0.34 0.20 -0.04 0.40 0.06 0.20 0.16 0.10 0.26 1.00 0.04000 0.02360 0.15362 3.84057 Expected return Variance STDEV CV You were provided with the above information about T-bills. Answer the following questions in the paces provided: 1. What does the expected return represent, and how is it...
Consider the following expected return on two stocks for two particular market returns: With probability 1/2...
Consider the following expected return on two stocks for two particular market returns: With probability 1/2 the market return is equal to 4%, return of stock A is 1% and B is 6%. With probability 1/2 the market return is equal to 20%, return of stock A is 33% and B is 10%. (Hint: these are realizations and not expected values, you should calculate the expected returns using the given probabilities and returns) (a) What is the expected rate of...
2. Consider the following expected return on two stocks for two particular market returns: With probability...
2. Consider the following expected return on two stocks for two particular market returns: With probability 1/2 the market return is equal to 4%, return of stock A is 1% and B is 6%. With probability 1/2 the market return is equal to 20%, return of stock A is 33% and B is 10%. (Hint: these are realizations and not expected values, you should calculate the expected returns using the given probabilities and returns) (a) What is the expected rate...
NEED EXCEL SOLUTION PLEASE: (EXCEL FORMULA) Suppose we have the following returns for the market and...
NEED EXCEL SOLUTION PLEASE: (EXCEL FORMULA) Suppose we have the following returns for the market and a stock: Year Market return Stock return 1 18% 7% 2 27% 25% 3 5% 21% 4 13% 4% 5 -17% -16% 6 6% 19% 7 -21% -38% 8 34% 29% 9 19% 15% 10 11% 16% What is the covariance and correlation of the returns between this stock and the market? Covariance: Use Covar Function Correlation: Use Correl Function Beta: Use Slope Function...
Rocession 9 5. Use the following information to answer the question assuming the equal probability of...
Rocession 9 5. Use the following information to answer the question assuming the equal probability of each scenario: Security 1(%) Security 2(%) 13 Normal 13 10 Boom 26 -2 E(R)-10%; E(R.) 7%; 0, -14.45%; 0, 6.48%; a) Calculate Covariance between Security 1 and Security 2. (6 points) b) Calculate Correlation between Security I and Security 2. (3 points) e) Calculate expected portfolio rate of return investing 60% of the wealth in Security I and the remaining in Security 2. (3...
Question 1: Suppose there are two risky assets, A and B. You collect the following data...
Question 1: Suppose there are two risky assets, A and B. You collect the following data on probabilities of different states happening and the returns of the two risky assets in different states: State Probability Return Asset A Return Asset B State 10.3 7% 14% State 20.4 6% -4% State 30.3 -8% 8% The risk-free rate of return is 2%. (a) Calculate expected returns, variances, standard deviations, covariance, and correlation of returns of the two risky assets. (b) There are...
INVESTMENTS/Ivkovich Problem Set 1 Due: 1/23/2020 Instructions: Each group will turn in one solution to the...
INVESTMENTS/Ivkovich Problem Set 1 Due: 1/23/2020 Instructions: Each group will turn in one solution to the problem set. Recall that late submission will not be allowed: problem sets must be submitted at the beginning of class on the due date. Make sure to document your work: do not merely give a solution without adequate explanations and intermediate steps necessary to obtain the results. You will be graded not only on the basis of the accuracy of your results, but also...
We can now use the Standard Normal Distribution Table to find the probability P(-0.25 sz s...
We can now use the Standard Normal Distribution Table to find the probability P(-0.25 sz s 1). 0.05 0.06 0.07 0.08 0.09 -0.2 0.4013 0.3974 0.3936 0.3897 0.3859 0.00 0.01 0.02 0.03 0.04 Using these 1.0 0.8413 0.8438 0.8461 0.8485 0.8531 The table entry for z = -0.25 is 0.00 and the table entry for z = 1 is values to calculate the probability gives the following result. PC-0.25 sz s 1) P(Z < 1) - P(Z 5 -0.25) 10....
PLEASE ANSWER THE QUESTION USING EXCEL AND SHOW ALL THE WORK AND FOMRULAS USED IN EXCEL. 5% 33% 6. The following table contains the probability distribution for the returns of three securities over the next year. Expected Returns Scenario Probability -17% .9% 11% 17% 7% 14% 25% 19% 29% 27% 34% -17% 35% 44% -27% a) Determine the expected return and standard deviation of each security. b) Calculate a variance and covariance matrix for these four securities using the given...
PART III RISK AND RETURN Cell for "2" State of the Economy Worst case Poor case Most likely Good case Best case Return on Probability Treasury of Bond in Occurrence Upcoming Year 0.10 -0.34 0.20 -0.04 0.40 0.06 0.20 0.16 0.10 0.26 1.00 0.04000 0.02360 0.15362 3.84057 Expected return Variance STDEV CV You were provided with the above information about T-bills. Answer the following questions in the paces provided: 1. What does the expected return represent, and how is it...
Rocession 9 5. Use the following information to answer the question assuming the equal probability of each scenario: Security 1(%) Security 2(%) 13 Normal 13 10 Boom 26 -2 E(R)-10%; E(R.) 7%; 0, -14.45%; 0, 6.48%; a) Calculate Covariance between Security 1 and Security 2. (6 points) b) Calculate Correlation between Security I and Security 2. (3 points) e) Calculate expected portfolio rate of return investing 60% of the wealth in Security I and the remaining in Security 2. (3...
Question 1: Suppose there are two risky assets, A and B. You collect the following data on probabilities of different states happening and the returns of the two risky assets in different states: State Probability Return Asset A Return Asset B State 10.3 7% 14% State 20.4 6% -4% State 30.3 -8% 8% The risk-free rate of return is 2%. (a) Calculate expected returns, variances, standard deviations, covariance, and correlation of returns of the two risky assets. (b) There are...
INVESTMENTS/Ivkovich Problem Set 1 Due: 1/23/2020 Instructions: Each group will turn in one solution to the problem set. Recall that late submission will not be allowed: problem sets must be submitted at the beginning of class on the due date. Make sure to document your work: do not merely give a solution without adequate explanations and intermediate steps necessary to obtain the results. You will be graded not only on the basis of the accuracy of your results, but also...
We can now use the Standard Normal Distribution Table to find the probability P(-0.25 sz s 1). 0.05 0.06 0.07 0.08 0.09 -0.2 0.4013 0.3974 0.3936 0.3897 0.3859 0.00 0.01 0.02 0.03 0.04 Using these 1.0 0.8413 0.8438 0.8461 0.8485 0.8531 The table entry for z = -0.25 is 0.00 and the table entry for z = 1 is values to calculate the probability gives the following result. PC-0.25 sz s 1) P(Z < 1) - P(Z 5 -0.25) 10....
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