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Portfolio Chas a standard deviation of 20% and a correlation with the market of 0.9. If...
Portfolio B has a standard deviation of 12% and a correlation with the market of 0.85....
Portfolio B has a standard deviation of 12% and a correlation with the market of 0.85. If the standard deviation of the market is 15%, what is the beta for B? a. 0.54 b. 0.68. c. 0.80. d. Not enough information to determine. Which of the following statements is not correct? a. Correlation ranges from-1 to +1. b. Coefficient of determination ranges from 0 to +1. c. Covariance equals: Standard deviation for A times standard deviation for B divided by...
Question 14 5 pts The correlation coefficient between a stock and the market portfolio is +0.6. The standard deviation...
Question 14 5 pts The correlation coefficient between a stock and the market portfolio is +0.6. The standard deviation of return of the stock is 30 percent and that of the market portfolio is 20 percent. Calculate the beta of the stock 0.9 1.1 1.0 0.6
Stock E(R) Standard Deviation Correlation between the stock and the market portfolio A 13% 12% 0.9...
Stock E(R) Standard Deviation Correlation between the stock and the market portfolio A 13% 12% 0.9 B 11% 16% 0.5 C 16% 23% 0.3 Standard Deviation for the market portfolio: 8% Risk free rate of return: 3% Market rate of return: 11% a. Calculate the alpha of three stocks above and determine if each stock is underpriced or overpriced. b. If you currently hold a market index portfolio, which stock is the best stock to add to your portfolio? c....
Suppose the standard deviation of the market return is 16%. a. What is the standard deviation...
Suppose the standard deviation of the market return is 16%. a. What is the standard deviation of returns on a well-diversified portfolio with a beta of 0.9? (Enter your answer as a percent rounded to 2 decimal places.) b. What is the standard deviation of returns on a well-diversified portfolio with a beta of O? (Enter your answer as a percent rounded to 2 decimal places.) c. A well-diversified portfolio has a standard deviation of 11%. What is its beta?...
Problem #5 (12 Marks) You have a portfolio with a standard deviation of 30% and an...
Problem #5 (12 Marks) You have a portfolio with a standard deviation of 30% and an expected return of 18%. You are considering adding one of the two stocks in the table below to your portfolio. After adding the stock, you will have 20% of your money in the new stock and 80% of your money in your existing portfolio. A) Calculate the risk and return of a new portfolio with 20% invested in stock A and 80% in your...
Given a market portfolio with an expected return of 10% and standard deviation of 20% and...
Given a market portfolio with an expected return of 10% and standard deviation of 20% and a risk-free rate of 5%, A. According to the Capital Market Line what is the expected return of a portfolio with a 30% standard deviation? B. What is the beta of the market portfolio? Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals.
A stock has a standard deviation of 32.00% and a correlation with the overall market of...
A stock has a standard deviation of 32.00% and a correlation with the overall market of 0.41. If the market portfolio has a standard deviation of 29.00%, what is the Beta for the stock? Submit Answer format: Number: Round to: 2 decimal places. A stock has a Beta of 1.39. The current risk free rate in the economy is 2.60%, while the market portfolio risk premium is 6.00%. What is the risk premium for holding this stock?
Stock A has an expected return of 11 percent, a beta of 0.9, and a standard deviation of 15 perce...
Stock A has an expected return of 11 percent, a beta of 0.9, and a standard deviation of 15 percent Stock B also has a beta of 0.9, but its expected returm is 9 percent and its standard deviation is 13 percent. Portfolio AB has $900,000 invested in Stock A and $300,000 invested in Stock B. The correlation between the two stocks' returns is zero. Which of the following statements is CORRECT? Select one O a.I am not sure b....
3) the standard deviation of the market return is 20%. What is the standard deviation of...
3) the standard deviation of the market return is 20%. What is the standard deviation of returns on a well-diversified What is the standard deviation of retuns on a well-diversified Avell-diversified portfolio has a standard deviation of 15%. What is portfolio with a beta of 1.3? portiolio with a beta of 0? its beta? A poorly diversified portfolio has a standard deviation of 20%. What can you say about its beta?
1. Given a market portfolio with an expected return of 10% and standard deviation of 20%...
1. Given a market portfolio with an expected return of 10% and standard deviation of 20% and a risk-free rate of 5%, according to the Capital Market Line what is the expected return of a portfolio with a 30% standard deviation? Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals. 2. What is the corresponding beta of the market portfolio?
Portfolio B has a standard deviation of 12% and a correlation with the market of 0.85. If the standard deviation of the market is 15%, what is the beta for B? a. 0.54 b. 0.68. c. 0.80. d. Not enough information to determine. Which of the following statements is not correct? a. Correlation ranges from-1 to +1. b. Coefficient of determination ranges from 0 to +1. c. Covariance equals: Standard deviation for A times standard deviation for B divided by...
Question 14 5 pts The correlation coefficient between a stock and the market portfolio is +0.6. The standard deviation of return of the stock is 30 percent and that of the market portfolio is 20 percent. Calculate the beta of the stock 0.9 1.1 1.0 0.6
Suppose the standard deviation of the market return is 16%. a. What is the standard deviation of returns on a well-diversified portfolio with a beta of 0.9? (Enter your answer as a percent rounded to 2 decimal places.) b. What is the standard deviation of returns on a well-diversified portfolio with a beta of O? (Enter your answer as a percent rounded to 2 decimal places.) c. A well-diversified portfolio has a standard deviation of 11%. What is its beta?...
Problem #5 (12 Marks) You have a portfolio with a standard deviation of 30% and an expected return of 18%. You are considering adding one of the two stocks in the table below to your portfolio. After adding the stock, you will have 20% of your money in the new stock and 80% of your money in your existing portfolio. A) Calculate the risk and return of a new portfolio with 20% invested in stock A and 80% in your...
Stock A has an expected return of 11 percent, a beta of 0.9, and a standard deviation of 15 percent Stock B also has a beta of 0.9, but its expected returm is 9 percent and its standard deviation is 13 percent. Portfolio AB has $900,000 invested in Stock A and $300,000 invested in Stock B. The correlation between the two stocks' returns is zero. Which of the following statements is CORRECT? Select one O a.I am not sure b....
3) the standard deviation of the market return is 20%. What is the standard deviation of returns on a well-diversified What is the standard deviation of retuns on a well-diversified Avell-diversified portfolio has a standard deviation of 15%. What is portfolio with a beta of 1.3? portiolio with a beta of 0? its beta? A poorly diversified portfolio has a standard deviation of 20%. What can you say about its beta?
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