Question

Fill in the missing information in the following table. Assume that Portfolio AB IS 60 percent invested in Stock A. (Round yo

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The answer for above problem is explained below.

Annual Returing on Stock A and B 1 Year Stock A Stock B Portfolio AB 2006 I 16 % 24% 19.2001 2007 35% -35%, 7.0011. 2008 -171Average return on stock A Aug return (A) = 16% + 3566.-17. +951.+15.4 Ang return (A) = 14.8.1.1 Average return on Stock B Augcalculation of standard deviation of stock a Year (A) Return (B) Aug Return (C) Deviahon (B-c) (3-0)2 2006 169%. 14.8% 1o21 1Calculation of standard deviahon Of Stock ? Year Return Deviakon Aug Return CO) (B-c)² (A) (B-C) 2006 244 15.6% 8.41. 70.56º.Calcula hon of portfolio AB stock a Stock B Portfolio A13 Return Return Year ! Weight weight B с (AXB5+ (xD) A D 2006 16% 24.Standard deviation of portfolio AB Deviation year Return (B) Averase Return (B-c72 (A) 2006 19-201. 150121- 4.08% 2007 7.00%

Add a comment
Know the answer?
Add Answer to:
Fill in the missing information in the following table. Assume that Portfolio AB IS 60 percent...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Fill in the missing information in the following table. Assume that Portfolio AB is 40 percent...

    Fill in the missing information in the following table. Assume that Portfolio AB is 40 percent invested in Stock A. (A negative value should be indicated by a minus sign. Do not round intermed iate calculations. Enter your answers as a percent rounded to 2 decimal places.) Annual Returns on Stocks A and B Year Stock A Stock B Portfolio AB 21 % 11 % 2012 (38) % 37 % 2013 2014 48% (21) % 2015 16 % 26 %...

  • Check my Fill in the missing information in the following table. Assume that Portfolio AB is...

    Check my Fill in the missing information in the following table. Assume that Portfolio AB is 70 percent invested in Stock A. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Annual Returns on Stocks A and B Year Stock A Stock B Portfolio AB 14.5 % 24.5% (35.9)% 2012 2013 35.6% 2014 (18.2)% 25.3% 45.9% 2015 16.7% 2016 14.4% 26.1% Average return...

  • The realized returns for stock A and stock B from 2004-2009 are provided in the table...

    The realized returns for stock A and stock B from 2004-2009 are provided in the table below Year 2004 2005 2006 2007 2008 2009 Stock A -9% 21% 6% -4% 3% 10% Stock B 23% 9% 32% -1% -6% 27% (a) Calculate the expected returns (as percents) over the next year for the stocks assuming the average annual realized returns and past volatility from 2004-2009 are unbiased estimators of expected returns and future volatility. stock A 4.5 stock B 14...

  • 50% invested in stock A and 50% invested in stock B. the following table, and the...

    50% invested in stock A and 50% invested in stock B. the following table, and the fact that the correlation of A and B is 0.47, calculate the volatility (standard deviation) of a portfolio that Using the data Realized Returns Stock B Stock A Year - 5 % 19% 2008 35% 8% 2009 7% 8% 2010 -9% -2% 2011 -14 % 2% 2012 27% 12% 2013 . (Round to two decimal places.) The standard deviation of the portfolio is

  • Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 36%. The...

    Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 36%. The T-bill rate is 6%.    Your risky portfolio includes the following investments in the given proportions:      Stock A 27 %   Stock B 35 %   Stock C 38 %    Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate...

  • Find the STD of the portfolio and round to two decimal places 12 of 17 (8...

    Find the STD of the portfolio and round to two decimal places 12 of 17 (8 complete) HW Score: 37%, 37 of 100 pts Score: 0 of 3 pts P 12-10 (similar to) Assigned Media Question Help Using the data in the following table, and the fact that the correlation of A and B is 0.55, calculate the volatility (standard deviation) of a portfolio that is 50% invested in stock A and 50% invested in stock B the sprea Realized...

  • You have a three-stock portfolio. Stock A has an expected return of 14 percent and a...

    You have a three-stock portfolio. Stock A has an expected return of 14 percent and a standard deviation of 35 percent, Stock B has an expected return of 18 percent and a standard deviation of 53 percent, and Stock C has an expected return of 17 percent and a standard deviation of 35 percent. The correlation between Stocks A and B is .07. between Stocks A and C is 20, and between Stocks B and C is 19. Your portfolio...

  • P 12-10 (similar to) Assigned Media Question Help Using the data in the following table, and...

    P 12-10 (similar to) Assigned Media Question Help Using the data in the following table, and the fact that the correlation of A and B is 0 27, calculate the volatility (standard deviation) of a portfolio that is 50% invested in stock A and 50% invested in stock B. Realized Returns Stock A Stock B -7% 29% 13% 13% - 2% - 11% 28% Year 2008 2009 2010 2011 2012 2013 31% - 10% P ma za The standard deviation...

  • The following table, contains annual returns for the stocks of ABC Corp. (ABC) and Company B...

    The following table, contains annual returns for the stocks of ABC Corp. (ABC) and Company B (B). The returns are calculated using end-of-year prices (adjusted for dividends and stock splits) retrieved from http://www.finance.yahoo.com/. Use the information to create an Excel spreadsheet that calculates the standard deviation of annual returns over the 10-year period for ABC, B, and of the equally-weighted portfolio of ABC and B over the 10-year period. (Hint: Review the Excel screenshot on page 173.) The average annual...

  • The following table contains the historic returns from large stocks and long-term Treasury bonds ...

    The following table contains the historic returns from large stocks and long-term Treasury bonds over the last 20 years. Analyze the risk-return trade-off that would have characterized these portfolios. Year Stoc 1997 31.33 24.27 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 24.89 -10.82 -11.00 -21.28 31.76 11.89 6.17 15.37 5.50 -36.92 29.15 17.80 1.01 16.07 35.18 11.37 11.312 13.094 -8.4734 14.4891 4-0302 14.6641 1.2778 5.1862 3.1030 2.2713 -6431 17.6664 5.8278 7.4457 16.6015 3.5862 -6.9025 10.1512...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT