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Amazon had returns over the last 5 years of 7%, 10%, -2%, 4%, and 1%, with a volatility of 4.74%. What is the average return
- Amazon had returns over the last 5 years of 7%, 10%, -2%, 4%, and 1%, with a volatility of 4.74%.
- What is the average return for Amazon over this time period?
- Overstock had a mean return of 7% and volatility of 8.4% over the last 5 years. Suppose you put 70% of your money in Amazon Corp. and the remainder in Overstock. Using the historical returns of the individual assets, what is the expected return on the portfolio?
- If the returns for Amazon and Overstock have a correlation of 0.243, what is the expected standard deviation of the portfolio?
- If Amazon has a beta of 1.7 and Overstock has a beta of 2.2, what is the beta of the portfolio?
- You have $20,000 to invest in some combination of the market portfolio and a risk-free asset. Suppose you desire a beta of .60. How much money should you invest in the market portfolio?
- You invest $25,000 in Google Inc. stock. Google has an expected return of 12% and a return variance of 0.0225. You also invest $40,000 in Tesla stock. Tesla has an expect return of 10% and a return variance of 0.36. The correlation between Google and Tesla is .17.
- What is the expected return of your overall portfolio?
- What is the volatility of your overall portfolio?
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