Question
1. If you own 300 shares of Alaska Air at $42.88, 350 shares of Best Buy at $51.32, and 250 shares of Ford Motor at
1.
If you own 300 shares of Alaska Air at $42.88, 350 shares of Best Buy at $51.32, and 250 shares of Ford Motor at $8.51, what are the portfolio weights of each stock? Round your answers to 3 decimals places.
Alaska Air | |
Best Buy | |
Ford Motor |
|
2. The past five monthly returns for Kohls are 3.54 percent, 3.62 percent, 1.68 percent, 9.25 percent, and 2.56 percent. Compute the standard deviation of Kohls monthly returns. (Do not round intermediate calculations and round your finalanswer to 2 decimal places.)
3.Calculate the price of a zero coupon bond that matures in 20 years if the market interest rate is 4.5 percent. (Do not round intermediate calculations and round your finalanswer to 2 decimal places.)
4.
Table 9.2 Average Returns for Bonds |
Long-Term Treasury Bonds | ||||
1950 to 1959 | Average | 0.0 | % | |
1960 to 1969 | Average | 1.6 | ||
1970 to 1979 | Average | 5.7 | ||
1980 to 1989 | Average | 13.5 | ||
1990 to 1999 | Average | 9.5 | ||
2000 to 2009 | Average | 8.0 |
Table 9.4 Annual Standard Deviation for Bonds |
Long-Term Treasury Bonds | |||
1950 to 1959 | 4.9 | % | |
1960 to 1969 | 6.2 | ||
1970 to 1979 | 6.8 | ||
1980 to 1989 | 15.1 | ||
1990 to 1999 | 12.8 | ||
2000 to 2009 | 10.3 |
Calculate the coefficient of variation of the risk-return relationship of the bond market (Use the above Tables) during each decade since 1950. (Round your answers to 2 decimal places.) |
Decade | CoV |
1950s | Not defined |
1960s | |
1970s | |
1980s | |
1990s | |
2000s |
|
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