Sharpe Ratio = [E(r) - rF] / S.D. = [12% - 4%] / 10% = 8%/10% = 0.8
Hence, Option "D" is correct.
How do you get this answer? Portfolio Weight 0.25 Correlation w Market Portfolio 0.7 0.6 0.5...
Use the following information to answer the question(s) below. Portfolio Correlation w/ Firm Weight Volatility Market Portfolio Taggart Transcontinental 0.25 14% 0.7 Wyatt oil 0.35 18% 0.6 Rearden Metal 0.40 15% 0.5 The volatility of the market portfolio is 10%, the expected return on the market is 12%, and the risk-free rate of interest is 4%. estion The expected return for Rearden Metal is closest to: Select one: A. 11.8% B. 11.4% C. 10.0% D. 12.0%
Use le nowing information to answer the question(s) below. 0.7 Portfolio Correlation w/ Firm Weight Volatility Market Portfolio Taggart Transcontinental 0.25 lehetett Wyatt oil 0.35 0.6 Rearden Metall 0.40 0.5 The volatility of the market portfolio is 10%, the expected return on the market is 12%, and the risk-free rate of interest is 4% stion The expected return for Wyatt Oil is closest to: Select one: A.12.6% B. 12.0% 0.11.8% D. 11.46
-9 points UTPBFIN1 III.E.016. Consider a portfolio consisting of the following three stocks. Portfolio Weight Volatility Correlation with the market portfolio HEC Corp 0.45 12 0.7 Green Midget yer 02 25% 0.5 AliveAnd well 0.35 134 0.6 The volatility of market portfolio is 10% and it has an expected return of 3%. The risk-free rate is 39 (a) Compute the beta of each stock (rounded to 4 decimal places) HEC Corp Green Midget AliveAnd Well (b) Compute the expected return...
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (T-0), you invest $400 in Stock A and $600 in Stock B to create Portfolio A,B. Assume there are not taxes or dividends. The one year performance of the stocks and the market is summarized in the table below. Use this information to help answer questions 16-20 Investment Total Return 12.0% 18.0% 10.0% Total Risk 14.0% 15.0% 12.0% Beta 1.00 1.40 0.60 Market Stock A 400...
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (T-0), you invest $400 in Stock A and $600 in Stock B to create Portfolio A,B. Assume there are not taxes or dividends. The one year performance of the stocks and the market is summarized in the table below. Use this information to help answer questions 16-20 Investment Market Stock A Stock B Total Return 12.0% 18.0% 10.0% Total Risk 14.0% 15.0% 12.0% Beta 1.00 1.40...
You have been provided the following data about the securities of three firms, the market portfolio, and the risk-free asset: a. Fill in the missing values in the table. (Leave no cells blank - be certain to enter o wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Expected Return Standard Deviation Security Correlation* Beta Firm A 0.120 0.21 0.96 Firm B 0.40 0.130 1.51 Firm C The market portfolio 0.111 0.76...
B. MICFUELUNUML U C. idiosyncratic risk CD. systematic risk 0.5. Which of thes A. II,IV B. II,IV.v C. 1,111,1V ck A and Z have a correlation 05 D. 1,111, E. I, 3 Stock A and Stock B have a correlation Correlation-0.7, Stock A and Z have than a portfolio of story are an in is part of market A. Stock A and Z have a stronge CB. A portfolio of stock A and B P C C. Stock A and...