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ignore question 6 i forgot to crop the screenshot 5. You plan to invest in the...
You plan to invest in the Kish Hedge Fund, which has total capital of R500 million invested in five stocks: Stock Investment Stock's Beta Coefficient A 160 million 0.5 B 120 million 1.2 C 80 million 1.8 D 80 million 1.0 E 60 million 1.6 Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 6%, and you believe the following probability distribution for future market returns is realistic: Probability Market Return...
You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks: Stock Investment Stock's Beta Coefficient A $160 million 0.4 B 120 million 1.3 C 80 million 1.9 D 80 million 1.0 E 60 million 1.8 Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 3%, and you believe the following probability distribution for future market returns is realistic: Probability Market Return...
You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks: Stock Investment Stock's Beta Coefficient A $160 million 0.8 B 120 million 1.6 C 80 million 1.7 D 80 million 1.0 E 60 million 1.9 Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 6%, and you believe the following probability distribution for future market returns is realistic: Probability Market Return...
You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks: Stock Stock's Beta Coefficient 1.6 Investment $160 million 120 million 80 million 80 million 60 million 2.0 1.0 1.3 Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 4%, and you believe the following probability distribution for future market returns is realistic: Probability Market Return -26% 0.1 0.2 0.4 0.2 28...
You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks: Stock Investment Stock's Beta Coefficient A $160 million 0.5 B 120 million 2.2 C 80 million 4.5 D 80 million 1.0 E 60 million 3.4 Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 3%, and you believe the following probability distribution for future market returns is realistic: Probability Market Return...
5. The 3410 Investment Fund has total capital of $500 mil Stock $160 million 32 4.0 1.0 64 16 al of $500 million invested in 5 stocks: Investment Stock's Beta 0.5 -16 $120 million 24 2.0 4 $80 million 16 $80 million 16 $60 million ez 3.0 56 The current risk-free rate is 6%, whereas market returns have the following tay distribution: Probability Market Return 2 0.1 0.2 7% of 9% 2018 ER = .06+108 [11] =.258 0.4 0.2 11%...
PLEASE SHOW EXPLANATION, WORK, AND EQUATIONS 6. Stock A has the following probability distribution of expected returns. What is Stock A's expected rate of return and standard deviation? Probability Rate of Return -12% 0.1 0.2 0.4 0.2 0.1 0 5 8 22
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 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...
7. The Capital Asset Pricing Model and the security market line Wilson holds a portfolio that invests equally in three stocks (WA = W3 = Wc = 1/3). Each stock is described in the following table: Stock Beta Standard Deviation Expected Return A 0.5 23% 7.5% B 1.0 38% 12.0% с 2.0 45% 14.0% An analyst has used market- and firm-specific information to generate expected return estimates for each stock. The analyst's expected return estimates may or may not equal...