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![E2 X fx =B2-$D$6 A F G (r-u)^2 P(r)x(r-u)^2 1 a) 2 B с D E Returns Probability Expected return (r) [(P(r)] [rxP(r)= u] r- -25](http://img.homeworklib.com/questions/56f26bc0-300b-11eb-85e4-b7fc118bbc30.png?x-oss-process=image/resize,w_560)
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Using the information provided below, calculate the expected standard deviation. Outcome Probability Return Recession 20% -25%...
a. The expected rate of return for portfolio A is: The standard deviation of portfolio A is: b. The expected rate of ret...
a. The expected rate of return for portfolio A is:
The standard deviation of portfolio A is:
b. The expected rate of return for portfolio B is:
The standard deviation for portfolio B is:
(Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment in one of two portfolios. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and...
a. The expected rate of return for portfolio A is The standard deviation of portfolio A...
a. The expected rate of return for portfolio A is
The standard deviation of portfolio A is
a. The expected rate of return for portfolio B is
The standard deviation of portfolio B is
Score: 0 of 1 pt | 4 of 9 (2 complete) HW Score: 22.22%, 2 of 9 pts P8-7 (similar to) :& Question Help (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment...
If a project costs $100,000 and is expected to return $20,000 annually, how long does it...
If a project costs $100,000 and is expected to return $20,000 annually, how long does it take to recover the initial investment? What would be the discounted payback period at i = 15%? Assume that the cash flows occur continuously throughout the year. The payback period is 5 years. (Round to one decimal place.) The discounted payback period at i = 15% would be years. (Round to one decimal place.)
The following table provides the expected return and the standard deviation of returns for srocks and...
The following table provides the expected return and the
standard deviation of returns for srocks and gold. Your client is
currently holding a portfolio of stocks and he is considering
whether he should replace half of the stocks with gold.
.
Question 1 Part a) The following table provides the expected return and the standard deviation of returns for stocks and gold. Your client is currently holding a portfolio of stocks and he is considering whether he should replace haif...
The expected return of the market portfolio is 10% and the standard deviation of the returns...
The expected return of the market portfolio is 10% and the standard deviation of the returns on the market portfolio is 15%. Betas of two stocks are 0.8 and 1.2. The covariance between their returns is approximately Select one: a. 0.0960 b. 0.1440 c. 0.0207 d. 0.0216
Calculate the expected rate of return, variance and standard deviation of bond and common stock
(a) Calculate the expected rate of return, variance and standard deviation of bond and common stock. (b) Do you think the above stocks and bonds is a good combination to form an investment portfolio? Explain why.(c) Assuming you invest in the portfolio with weights of 70% in stock and 30% in bonds. What are the expected rate of return and standard deviation of the portfolio?
Expected Return of Asset 1 = 15.00% Standard Deviation of Asset 1 = 17.00% Expected Return...
Expected Return of Asset 1 = 15.00% Standard Deviation of Asset 1 = 17.00% Expected Return of Asset 2 = 9.75% Standard Deviation of Asset 2 = 8.88% The correlation coefficient1,2 = 0.45 A portfolio invested 50% in Asset 1 and 50% in Asset 2 is formed. Compute the portfolio's expected return. Select one: a. 11.22% b. 4.71% c. 12.38% d. 9.09% e. 27.20%
A food cart costs $4,500 and is expected to return $1,750 a year for three years...
A food cart costs $4,500 and is expected to return $1,750 a year for three years and then be worthless. What is the payback period for this cart? Select one: A. 1.57 years B. 3.14 years C. 2.78 years D. 2.57 years E. 2.83 years
Subject Investment [20] QUESTION FIVE 5.1 Using the following information for Poimex's portfolios, answer question 5.1.1...
Subject Investment
[20] QUESTION FIVE 5.1 Using the following information for Poimex's portfolios, answer question 5.1.1 and 5.12 that follow: Primex invested R2 000 000 in a portfolio with the following characteristics: Description of share/bond Investment (R) Beta Retail R400 000 0.8 Industrial R500 000 1.5 Resources R686 000 1.8 Risk-free asset R414 000 0 5.2 The return on the market is 17% and the risk free rate is 8%. 5.1.1 Calculate the Beta for Poimex's portfolio 5.1.2 Calculate the...
Q1) A stock fund has an expected return of 15% and a standard deviation of 25%...
Q1) A stock fund has an expected return of 15% and a standard deviation of 25% and a bond fund has an expected return of 10% and a standard deviation of 10%. The correlation between the two funds is 0.25. The risk free rate is 5%. What is the (a) expected return and (b) standard deviation of the portfolio with 70% weight in the stock portfolio and 30% weight in the bond portfolio? Q2) The variance of Stock A is...
a. The expected rate of return for portfolio A is:
The standard deviation of portfolio A is:
b. The expected rate of return for portfolio B is:
The standard deviation for portfolio B is:
(Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment in one of two portfolios. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and...
a. The expected rate of return for portfolio A is
The standard deviation of portfolio A is
a. The expected rate of return for portfolio B is
The standard deviation of portfolio B is
Score: 0 of 1 pt | 4 of 9 (2 complete) HW Score: 22.22%, 2 of 9 pts P8-7 (similar to) :& Question Help (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment...
If a project costs $100,000 and is expected to return $20,000 annually, how long does it take to recover the initial investment? What would be the discounted payback period at i = 15%? Assume that the cash flows occur continuously throughout the year. The payback period is 5 years. (Round to one decimal place.) The discounted payback period at i = 15% would be years. (Round to one decimal place.)
The following table provides the expected return and the
standard deviation of returns for srocks and gold. Your client is
currently holding a portfolio of stocks and he is considering
whether he should replace half of the stocks with gold.
.
Question 1 Part a) The following table provides the expected return and the standard deviation of returns for stocks and gold. Your client is currently holding a portfolio of stocks and he is considering whether he should replace haif...
Subject Investment
[20] QUESTION FIVE 5.1 Using the following information for Poimex's portfolios, answer question 5.1.1 and 5.12 that follow: Primex invested R2 000 000 in a portfolio with the following characteristics: Description of share/bond Investment (R) Beta Retail R400 000 0.8 Industrial R500 000 1.5 Resources R686 000 1.8 Risk-free asset R414 000 0 5.2 The return on the market is 17% and the risk free rate is 8%. 5.1.1 Calculate the Beta for Poimex's portfolio 5.1.2 Calculate the...
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