Answer each question individually all parts need to be answered for each question.

Homework: Chapter 8 Homework Save Score: 0 of 1 pt 6 of 9 (1 complete) HW Score: 11.11%, 1 of 9 pts P8-21 (similar to) Question Help 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 and the standard deviation of each asset? c. What is the expected return of a portfolio with 8% in asset J, 48% in asset K, and 44% in asset L? d. What is the portfolio's variance and standard deviation using the same asset weights from part (c)? 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 J? (Round to four decimal places.) i Data Table - X (Click on the following icon in order to copy its contents into a spreadsheet.) Return on Return on Return on State of Probability Asset J in Asset K in Asset L in Economy of State State State State Boom 0.25 0.070 0.220 0.270 Growth 0.37 0.070 0.110 0.220 Stagnant 0.24 0.070 0.065 0.090 Enter your answer in the answer box and then click Check Answer. Recession 0.14 0.070 - 0.090 - 0.200 11 parts remaining Print Done heck AnswerHomework: Chapter 8 Homework Save Score: 0 of 1 pt 7 of 9 (1 complete) HW Score: 11.11%, 1 of 9 p P8-23 (similar to) # Question Help Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: . What are her expected returns and the risk from her investment in the three assets? How do they compare with investing in asset M alone? Hint: Find the standard deviations of asset M and of the portfolio equally invested in assets M, N, and O. What is the expected return of investing equally in all three assets M, N, and O? % (Round to two decimal places.) i Data Table - X (Click on the following icon [ in order to copy its contents into a spreadsheet.) States Probability Asset M Return Asset N Return Asset O Return Boom 34% 11% 22% - 1% Norma 659% 8% 13% Recession 11% - 1% 2% 11% Print Done Enter your answer in the answer box and then click Check Answer. 4 parts remaining Clear All Check AnswerHomework: Chapter 8 Homework Save Score: 0 of 1 pt 8 of 9 (1 complete) HW Score: 11.11%, 1 of 9 p P8-24 (similar to) Question Help Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: a. What are her expected returns and the risk from her investment in the three assets? How do they compare with investing in asset M alone? Hint: Find the standard deviations of asset M and of the portfolio equally invested in assets M, N, and O. b. Could Sally reduce her total risk even more by using assets M and N only, assets M and O only, or assets N and O only? Use a 50/50 split between the asset pairs, and find the standard deviation of each asset pair. a. What is the expected return of investing equally in all three assets M, N, and O? % (Round to two decimal places.) i Data Table - X (Click on the following icon in order to copy its contents into a spreadsheet.) States Probability Asset M Return Asset N Return Asset O Return Boom 32% 10% 19% - 2% Normal 53% 7% 12% 7% Recession 15% - 2% - 1% 10% Print Done Enter your answer in the answer box and then click Check Answer. 11 parts remaining Clear All Check AnswerHomework: Chapter 8 Homework Save Score: 0 of 1 pt 9 of 9 (1 complete) HW Score: 11.11%, 1 of 9 p P8-25 (similar to) Question Help Beta of a portfolio. The beta of four stocks-G, H, I, and J-are 0.46, 0.86, 1.11, and 1.57, respectively. What is the beta of a portfolio with the following weights in each asset: ? What is the beta of portfolio 1? (Round to two decimal places.) i Data Table - X (Click on the following icon _ in order to copy its contents into a spreadsheet.) Weight in Weight in Weight in Weight in Stock G Stock H Stock I Stock J Portfolio 1 25% 25% 25% 25% Portfolio 2 30% 40% 20% 10% Portfolio 3 10% 20% 40% 30% Print Done Enter your answer in the answer box and then click Check Answer. 2 parts remaining Clear All Check AnswerHomework: Chapter 8 Homework Save Score: 0 of 1 pt 1 of 9 (0 complete) HW Score: 0%, 0 of 9 pts P8-4 (similar to) Question Help Returns. What are the returns on the following investments, [ ] ? Original Cost Selling Price Distributions Investment of Investment of Investment Received Percent Return CD $100 $170 % (Round to two decimal places.) i Data Table - X (Click on the following icon in order to copy its contents into a spreadsheet.) Original Cost Selling Price Distributions Investment of Investment of Investment Received Percent Return CD $100 $170 $0 ? Stock 519 $11 $1 Bond $1,020 $1,090 590 ? Car $35,000 $22,000 50 Print Done Enter your answer in the answer box and then click Check Answer. (? 3 parts remaining Clear All Check AnswerHomework: Chapter 8 Homework Save Score: 0 of 1 pt 2 of 9 (0 complete) HW Score: 0%, 0 of 9 pt P8-6 (similar to) Question Help Holding period and annual (investment) returns. Bohenick Classic Automobiles restores and rebuilds old classic cars. The company purchased and restored a classic 1957 Thunderbird convertible 7 years ago for $7,800.00. Today at auction, the car sold for $85,800.00. What are the holding period return and the annual return on this investment? What is the holding period return of the car? % (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. 2 parts remaining Clear All Check AnswerThree-Month Long-Term Large Company Small Company Year U.S.Treasury Bills Government Bond Stocks Stocks 1950 1.20% 32.68%% 48.45% 1951 1.49% -1.95% 23.47% 9.41% 1952 1.68% 1.93% 18.91% 6.36% 1953 1.825 3.83% -1.74% 5.66% 1954 0.86% 4.88% 52.55% 85.13% 1855 1 579 -1.34% 31.44% 21.84% 1958 2.46% 5.12% 6.45%% 3.82% 1947 3.149 9.46% 11.14% 15.03% 1958 1.54% -3.71% 13.78% 70.63%% 1959 2 95% 3.55% 12 95% 17.823 1960 2.68% 13.78% 0.19% 5.10% 1961 2.13% 0.19% 27.63% 30.48%% 1962 2.72% 6.81% 9.79% 16.419 1983 3.12% 0.49% 22.63% 12.20 1964 3.54% 4.51% 3.9494 16.67% 18.75% 1065 -0.27% 12.50%% 87-67% 1066 4.77% 3.70% 10.25% 8.08% 1967 4 24% -7.41% 24.11% 103.39% 1968 1.20% 11.00% 50.61% 1969 6.52% -8.33% -32.27% 1970 12.60% 4.10% 1971 17.47% 14.17% 18.44% 1872 3.81% 5.55% 19.14% -0.62% 1973 6.91%% 14.75% 1974 7.93% 5.53%% 26 40% -29 74% 1075 6 BOK 8.60%% 37.26% 69.54%% 1976 11.07 23.98%% 54 81% 1977 5.10% 0.90% -7.26% 2202% 1978 7.15%% 4.16% 22 29%% 1979 10.45% 9 02% 6 50% 18.77% 43.99% 1080 11.57% 13.17% 32 48% 35 34% 1081 14.95% 361% -4.98% 1982 10 71 6.52% 22 09% 27 A4% 1083 8.85% -0.53% 22 37% 34.49% 1904 10.02% 15.20% 6.40% 14.02% 1085 7 83% 32.69% 32 00% 6.18% 23.90% 18.40% 3.40% 1907 6.60%% -2.65% 5.349% -13.95%% 1983 6.445 16.86% 21.72% 1039 8.32% 8.40% 19/40 31.34% 1090 7.809% 7.13%% -3.20% -27 08% 1991 18.30 50 241 7.71 27.845 2:07% 15.48% 20 30% 3.91% -7.18% 1905 5.58% 5.50%% 31.67%% 37.71% 0.81 18.60%% 15.005% 33.17% 1908 5.11%% 13.52% 22 3876 1980 8.74% -255% 21 26% 50-year average 5.226% 1.036% 14.890% 17.103% Standard Deviation 2.98056 9.193% 16.605% 20.043%Homework: Chapter 8 Homework Save Score: 0 of 1 pt 4 of 9 (1 complete) HW Score: 11.11%, 1 of 9 pts Instructor-created question Question Help Variance and standard deviation. Calculate the variance and the standard deviation of U.S. Treasury bills, long-term government bonds, and small-company stocks for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989 from Table 8.1. Which had the highest variance? Which had the lowest variance? Click on the Spreadsheet Learning Aid to see Table 8.1-Year-by-Year Returns, 1950-1999. 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. What is the variance of U.S. Treasury bills for 1980 to 1989? The variance of U.S. Treasury bills for 1980 to 1989 is |%. (Round to five decimal places.) What is the standard deviation of U.S. Treasury bills for 1980 to 1989? The standard deviation of U.S. Treasury bills for 1980 to 1989 is |%. (Round to three decimal places.) What is the variance of long-term government bonds for 1980 to 1989? The variance of long-term government bonds for 1980 to 1989 is %. (Round to five decimal places.) What is the standard deviation of long-term government bonds for 1980 to 1989? The standard deviation of long-term government bonds for 1980 to 1989 is %. (Round to three decimal places.) Calculate the variance of small-company stocks for 1980 to 1989? The variance of small-company stocks for 1980 to 1989 is %. (Round to five decimal places.) Enter your answer in the edit fields and then click Check Answer. (? All parts showing Clear All Check AnswerHomework: Chapter 8 Homework Save Score: 0 of 1 pt 4 5 of 9 (1 complete) HW Score: 11.11%, 1 of 9 p P8-15 (similar to) Question Help Expected return. Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 13%, the probability of a stable growth economy is 19%, the probability of a stagnant economy is 54%, and the probability of a recession is 14%. Estimate the expected returns on the following individual investments for the coming year, EFF]. 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. What is the expected return of the stock investment? % (Round to two decimal places.) i Data Table - X (Click on the following icon in order to copy its contents into a spreadsheet.) Forecasted Returns for Each Economy Stable Investment Boom Growth Stagnant Recession Stock 23% 10% 7% - 10% Corporate bond 10% 7% 5% 3% Government bond 9% 6% 1% 2% Print Done Enter your answer in the answer box and then click Check 2 parts remaining Clear All Check