Question
1. Jackson has returns of 18%, -7%, -14%, and 10%, on his stock investment What is the arithmetic average return on his stock? What
1. Jackson has returns of 18%, -7%, -14%, and 10%, on his stock investment
What is the arithmetic average return on his stock?
What is the geometric average return on his stock?
2. Your portfolio consists of $3,000 in ABC stock, $4,500 of DEF stock and $2,500 of GHI stock. Expected rates of return are ABC 5%, DEF 12%, and GHI 16%. What is the portfolio expected rate of return?
3. The expected return on VZ next year is 12% with a standard deviation of 20%. The expected return on ANT next year is 24% with a standard deviation of 30%. The correlation between the two stocks is .6. If Emily makes equal investments in VZ and ANT, what is the standard deviation of her portfolio?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
1 a The arithmetic average return on Jacksons stock is calculated by summing the returns and dividin...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
