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Because securities are not perfectly correlated there fore correlation coefficient is less than one causing the std deviation to be less than the weighted average.
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Please answer in detail. Thank you! Question 6 (1 point) The standard deviation of the 70% A and 30% B portfo...
Please answer in detail. (calculator steps if possible) Question 5 (1 point) What is the expected return of a...
Please answer in detail. (calculator steps if possible)
Question 5 (1 point) What is the expected return of a portfolio that has 70% in Asset A and 30% in Asset B? Probability Asset A Asset B State of Rate of of State of Rate of Economy Economy Return Return Boom 0.3 0.13 0.08 Normal 0.5 0.05 0.06 Recession 0.2 -0.05 -0.01
Show transcribed image text Question 5 (1 point) What is the expected return of a portfolio that has 70%...
1. What is the EXPECTED RETURN for Asset A and B? 2.What is the STANDARD DEVIATION for Asset A and B? State...
1. What is the EXPECTED RETURN for Asset A and B?
2.What is the STANDARD DEVIATION for Asset A and B?
State of Economy Probability Asset A of State of Rate of Economy Return 0.3 0.13 0.5 0.06 0.2 -0.05 Asset B Rate of Return 0.08 0.05 -0.01 Boom Normal Recession
Show transcribed image text State of Economy Probability Asset A of State of Rate of Economy Return 0.3 0.13 0.5 0.06 0.2 -0.05 Asset B Rate of Return 0.08...
What is the standard deviation of the portfolio? Rate of Return if State Occurs Stock State of Economy Probability o...
What is the standard deviation of the portfolio? Rate of Return if State Occurs Stock State of Economy Probability of State of Economy Stock A Stock B c Boom 45% 0.18 0.40 0.22 Bust 55% -0.06 -0.06 -0.30 -0.05 Asset Weights 25% 30% 45%
Expected return and standard deviation. Use the following information to answer the questions. State of Economy...
Expected return and standard deviation. Use the following information to answer the questions. State of Economy Probability of State Return on Asset D in State Return on Asset E in State Return on Asset F in State Boom 0.38 0.08 0.31 0.19 Normal 0.48 0.08 0.17 0.13 Recession 0.14 0.08 −0.22 - 0.04 a. What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? Hint:...
b) calculate the standard deviation of the portfolio. c) calculate the beta of the portfolio. d)...
b) calculate the standard deviation of the portfolio.
c) calculate the beta of the portfolio.
d) is the systematic risk of the portfolio is more or less than
the market?
Question 7 (15 pts): retums for There are three states of economy and you are given the following probabilities and each stock for each state of economy. You invest 30% in stock X and 70% in stock Y. The betas for cach stock are also given below Returns if State...
Please answer ASAP with FULL steps. thank you! You are responsible for managing a portfolio of...
Please answer ASAP with FULL steps. thank you! You are responsible for managing a portfolio of two investments for the coming year. You have read all of the latest financial news and according to your favourite reputable financial analysts, the probability of another recession occurring is 30% and the probability of a boom is 20%; otherwise the economy will be behaving normally. Common shares of Firm A are expected to earn a return of 30% during boom times, but lose...
Expected return and standard deviation. Use the following information to answer the questions: a. What is...
Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type a. What is the expected return of asset...
You have a portfolio which is comprised of 70% of Stock A and 30% of Stock...
You have a portfolio which is comprised of 70% of Stock A and 30% of Stock B. What is the expected rate of return on this portfolio? Rate of Return if State Occurs State of the Economy Probability of State of Economy Stock A Stock B Boom .25 24 % 15 % Normal .65 12 % 12 % Recession .10 -36 % 8 %
Solve please and show calculations. Thank you Question 5 5 pts Over the past six years,...
Solve please and show calculations. Thank you
Question 5 5 pts Over the past six years, a stock had annual returns of 2 percent, -5 percent, 6 percent, 3 percent, 3 percent, and -2 percent, respectively. What is the standard deviation of these returns? 3.61 percent 3.97 percent 3.88 percent 3.33 percent O 3.29 percent Question 16 8 pts Given the following information, what is the standard deviation for this stock? (Hint: you'll need to find the expected return first)...
You have a portfolio which is comprised of 70% of Stock A and 30% of Stock...
You have a portfolio which is comprised of 70% of Stock A and 30% of Stock B. What is the expected rate of return on this portfolio? Rate of Return if State Occurs 13 Probability of State of the Economy State of Economy Boom .25 Normal .65 Recession . 10 Stock A 24% 12% -36% Stock B 15% 12% 8% Multiple Choice 1113% 12.80%
Please answer in detail. (calculator steps if possible)
Question 5 (1 point) What is the expected return of a portfolio that has 70% in Asset A and 30% in Asset B? Probability Asset A Asset B State of Rate of of State of Rate of Economy Economy Return Return Boom 0.3 0.13 0.08 Normal 0.5 0.05 0.06 Recession 0.2 -0.05 -0.01
Show transcribed image text Question 5 (1 point) What is the expected return of a portfolio that has 70%...
1. What is the EXPECTED RETURN for Asset A and B?
2.What is the STANDARD DEVIATION for Asset A and B?
State of Economy Probability Asset A of State of Rate of Economy Return 0.3 0.13 0.5 0.06 0.2 -0.05 Asset B Rate of Return 0.08 0.05 -0.01 Boom Normal Recession
Show transcribed image text State of Economy Probability Asset A of State of Rate of Economy Return 0.3 0.13 0.5 0.06 0.2 -0.05 Asset B Rate of Return 0.08...
What is the standard deviation of the portfolio? Rate of Return if State Occurs Stock State of Economy Probability of State of Economy Stock A Stock B c Boom 45% 0.18 0.40 0.22 Bust 55% -0.06 -0.06 -0.30 -0.05 Asset Weights 25% 30% 45%
b) calculate the standard deviation of the portfolio.
c) calculate the beta of the portfolio.
d) is the systematic risk of the portfolio is more or less than
the market?
Question 7 (15 pts): retums for There are three states of economy and you are given the following probabilities and each stock for each state of economy. You invest 30% in stock X and 70% in stock Y. The betas for cach stock are also given below Returns if State...
Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type a. What is the expected return of asset...
Solve please and show calculations. Thank you
Question 5 5 pts Over the past six years, a stock had annual returns of 2 percent, -5 percent, 6 percent, 3 percent, 3 percent, and -2 percent, respectively. What is the standard deviation of these returns? 3.61 percent 3.97 percent 3.88 percent 3.33 percent O 3.29 percent Question 16 8 pts Given the following information, what is the standard deviation for this stock? (Hint: you'll need to find the expected return first)...
You have a portfolio which is comprised of 70% of Stock A and 30% of Stock B. What is the expected rate of return on this portfolio? Rate of Return if State Occurs 13 Probability of State of the Economy State of Economy Boom .25 Normal .65 Recession . 10 Stock A 24% 12% -36% Stock B 15% 12% 8% Multiple Choice 1113% 12.80%
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