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Question 19 5 pts You own a portfolio that has...
Solve please and show calculations. Thank you Question 5 5 pts Over the past six years,...
Solve please and show calculations. Thank you
Question 5 5 pts Over the past six years, a stock had annual returns of 2 percent, -5 percent, 6 percent, 3 percent, 3 percent, and -2 percent, respectively. What is the standard deviation of these returns? 3.61 percent 3.97 percent 3.88 percent 3.33 percent O 3.29 percent Question 16 8 pts Given the following information, what is the standard deviation for this stock? (Hint: you'll need to find the expected return first)...
Expected Returns 0.17 0.11 0.30 Standard Deviation 0.12 0.05 Firm A's common stock Firm B's common...
Expected Returns 0.17 0.11 0.30 Standard Deviation 0.12 0.05 Firm A's common stock Firm B's common stock Correlation coefficient (Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from college and is evaluating an investment in two companies' common stock. She has collected the following information abou the common stock of Firm A and Firm B: a. If Mary decides to invest 10 percent of her money in Firm A's common stock and 90...
Assume you are considering investing your personal portfolio in only two possible risky assets: 60% invested...
Assume you are considering investing your personal portfolio in only two possible risky assets: 60% invested in Asset Y and the rest in Asset Z. The characteristics of these two risky assets are as follows: Asset Y has an Expected Return of 12% and a standard deviation of 15% Asset Z has an Expected Return of 9% and a standard deviation of 12% Correlation between the returns of Asset Y and Asset Z is 0.20 Find the Expected Return of...
You have $410,000 invested in a well-diversified portfolio. You inherit a house that is presently worth...
You have $410,000 invested in a well-diversified portfolio. You inherit a house that is presently worth $160,000. Consider the summary measures in the following table: Investment Expected Return Standard Deviation Old portfolio House 6% 13% 11% 19% The correlation coefficient between your portfolio and the house is o.5 a. What is the expected return and the standard deviation for your portfolio comprising your old portfolio and round intermediate calculations. Round your final answers to 2 decimal places.) the house? (Do...
You have $500,000 invested in a well-diversified portfolio. You inherit a house that is presently worth...
You have $500,000 invested in a well-diversified portfolio. You inherit a house that is presently worth $150,000. Consider the summary measures in the following table Investment Old portfolio House Expected Return 7% 19% Standard Deviation 10% 21% 5 points The correlation coefficient between your portfolio and the house is 0.34 eBook a. What is the expected return and the standard deviation for your portfolio comprising your old portfolio and the house? (Do not round intermediate calculations. Round your final answers...
Question 8 and 9 Consider the following three assets: Asset A's expected return is 5% and...
Question 8 and 9 Consider the following three assets: Asset A's expected return is 5% and return standard deviation is 25% Asset B's expected return is 8% and return standard deviation is 32%. . Asset C is a risk-free asset with 2% return The correlation between assets A and B is-0.3 8. Constructing a portfolio from assets A and B such that the expected return of the portfolio equals 3%, find the portfolio weights of assets A and B and...
2. Company A's stock has a beta of BA 1.5, and Company B's stock has a beta of βΒ-2.5. Expected r...
2. Company A's stock has a beta of BA 1.5, and Company B's stock has a beta of βΒ-2.5. Expected returns on this two stocks are E [rA]-9.5 and E rB 14.5. Assume CAPM holds. At age 30, you decide to allocate ALL your financial wealth of $100k between stock A and stock B, with portfolio weights wA + wB1. You would like this portfolio to be risky such that Bp- 3 (a) Solve for wA and wB- (b) State...
You have $390,000 invested in a well-diversified portfolio. You inherit a house that is presently worth...
You have $390,000 invested in a well-diversified portfolio. You inherit a house that is presently worth $230,000. Consider the eturn old portfolio House 5t 151 18% 30% The correlation coefficient between your portfolio and the house is 0.3. a. What is the expected return and the standard deviation for your portfolio comprising your old portfolio and the house? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Expected return Standard deviation b. Suppose you decide to...
You have $410,000 invested in a well-diversified portfolio. You inherit a house that is presently worth...
You have $410,000 invested in a well-diversified portfolio. You inherit a house that is presently worth $160,000. Consider the summary measures in the following table: Investment Expected Return Standard Deviation Old portfolio House 6% 138 118 198 The correlation coefficient between your portfolio and the house is 0.5. a. What is the expected return and the standard deviation for your portfolio comprising your old portfolio and the house? (Do not round intermediate calculations. Round your final answers to 2 decimal...
5-12 Portfolio return and standard deviation Jamie Wong is considering building a portfolio containing two assets,...
5-12 Portfolio return and standard deviation Jamie Wong is considering building a portfolio containing two assets, L and M. Asset L will represent 40% of the dollar value of the portfolio, and asset M will account for the other 60%. The expected returns over the next 6 years, 2004–2009, for each of these assets, are shown in the following table. Expected return Asset L Asset M Year 20% 14% 14 16 2004 2005 2006 2007 2008 2009 17 a. Calculate...
Solve please and show calculations. Thank you
Question 5 5 pts Over the past six years, a stock had annual returns of 2 percent, -5 percent, 6 percent, 3 percent, 3 percent, and -2 percent, respectively. What is the standard deviation of these returns? 3.61 percent 3.97 percent 3.88 percent 3.33 percent O 3.29 percent Question 16 8 pts Given the following information, what is the standard deviation for this stock? (Hint: you'll need to find the expected return first)...
Expected Returns 0.17 0.11 0.30 Standard Deviation 0.12 0.05 Firm A's common stock Firm B's common stock Correlation coefficient (Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from college and is evaluating an investment in two companies' common stock. She has collected the following information abou the common stock of Firm A and Firm B: a. If Mary decides to invest 10 percent of her money in Firm A's common stock and 90...
You have $410,000 invested in a well-diversified portfolio. You inherit a house that is presently worth $160,000. Consider the summary measures in the following table: Investment Expected Return Standard Deviation Old portfolio House 6% 13% 11% 19% The correlation coefficient between your portfolio and the house is o.5 a. What is the expected return and the standard deviation for your portfolio comprising your old portfolio and round intermediate calculations. Round your final answers to 2 decimal places.) the house? (Do...
You have $500,000 invested in a well-diversified portfolio. You inherit a house that is presently worth $150,000. Consider the summary measures in the following table Investment Old portfolio House Expected Return 7% 19% Standard Deviation 10% 21% 5 points The correlation coefficient between your portfolio and the house is 0.34 eBook a. What is the expected return and the standard deviation for your portfolio comprising your old portfolio and the house? (Do not round intermediate calculations. Round your final answers...
Question 8 and 9 Consider the following three assets: Asset A's expected return is 5% and return standard deviation is 25% Asset B's expected return is 8% and return standard deviation is 32%. . Asset C is a risk-free asset with 2% return The correlation between assets A and B is-0.3 8. Constructing a portfolio from assets A and B such that the expected return of the portfolio equals 3%, find the portfolio weights of assets A and B and...
2. Company A's stock has a beta of BA 1.5, and Company B's stock has a beta of βΒ-2.5. Expected returns on this two stocks are E [rA]-9.5 and E rB 14.5. Assume CAPM holds. At age 30, you decide to allocate ALL your financial wealth of $100k between stock A and stock B, with portfolio weights wA + wB1. You would like this portfolio to be risky such that Bp- 3 (a) Solve for wA and wB- (b) State...
You have $390,000 invested in a well-diversified portfolio. You inherit a house that is presently worth $230,000. Consider the eturn old portfolio House 5t 151 18% 30% The correlation coefficient between your portfolio and the house is 0.3. a. What is the expected return and the standard deviation for your portfolio comprising your old portfolio and the house? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Expected return Standard deviation b. Suppose you decide to...
You have $410,000 invested in a well-diversified portfolio. You inherit a house that is presently worth $160,000. Consider the summary measures in the following table: Investment Expected Return Standard Deviation Old portfolio House 6% 138 118 198 The correlation coefficient between your portfolio and the house is 0.5. a. What is the expected return and the standard deviation for your portfolio comprising your old portfolio and the house? (Do not round intermediate calculations. Round your final answers to 2 decimal...
5-12 Portfolio return and standard deviation Jamie Wong is considering building a portfolio containing two assets, L and M. Asset L will represent 40% of the dollar value of the portfolio, and asset M will account for the other 60%. The expected returns over the next 6 years, 2004–2009, for each of these assets, are shown in the following table. Expected return Asset L Asset M Year 20% 14% 14 16 2004 2005 2006 2007 2008 2009 17 a. Calculate...
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