compute the expected return and standard deviation of the equity and market portfolio
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
Compute the expected return, standard deviation, beta, and nonsystematic standard deviation of the portfolio. 4. Assume that the total market value of an initial portfolio is $300,000. Suppose that the owner of this portfolio wishes to decrease risk by reducing the allocation to the risky portfolio from y = 0.7 to y = 0.56. How do you reallocate your risky portfolio? 5. Which of the following factors reflect pure market risk for a given corporation? a. Increased short-term interest rates....
You are given the following information of two assets:AssetReturnWeightingRisk X10%75%3%Y20%25%9%The expected return of the portfolio is _____________.The standard deviation of the portfolio with a (rho) p of +1.0 is _______________The standard deviation of the portfolio with a (rho) p of 0 is ________________The standard deviation of the portfolio with a (rho) p of -1.0 is ______________
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.
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.
The expected return of the market portfolio is 14 percent with a standard deviation of 25 percent. The risk-free rate is 6 percent. What is the weight of the market portfolio in an efficient portfolio with a standard deviation of 30 percent? A) 120% B) 83.33% C) 20% D) 16.78%
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...
13. Consider a Market Portfolio with 12% expected return and 20% return standard deviation. If the Sharpe ratio of the market portfolio is 0.5, what is the risk-free rate of return? (a) 0.01 (b) 0.02 (c) 0.03 (d) 0.04
The market portfolio has an expected return of 11.5 percent and a standard deviation of 21.5 percent. The risk-free rate is 4.5 percent. a. What is the expected return on a well-diversified portfolio with a standard deviation of 8.5 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Expected return % b. What is the standard deviation of a well-diversified portfolio with an expected return of 19.5...
The market portfolio has an expected return of 12.3 percent and a standard deviation of 22.3 percent. The risk-free rate is 5.3 percent. a. What is the expected return on a well-diversified portfolio with a standard deviation of 9.3 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the standard deviation of a well-diversified portfolio with an expected return of 20.3 percent? (Do not round intermediate...