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Can someone help me do these? I'd like to see how they were done as well so I know how to do them in the

Can someone help me do these? I'd like to see how they were done as well so I know how to do them in the future please.

1. You calculated that the average return of your portfolio is 5% and the standard deviation is 21%, what is the value at risk (VaR) at 5% for your portfolio?

2. A portfolio with a 15% standard deviation generated a return of 5% last year when risk free T-bills were paying 1%. You are considering adding one more stock to your portfolio, the stock will boost the portfolios expected return to 15% while also increases the standard deviation to 30%. If you are interested in the best risk versus return trade-off, should you add the stock?

A.

Yes because it increases the portfolio's Sharpe ratio to 0.50

B.

Yes because it increases portfolio's return to 15%.

C.

No because it decreases the portfolio's sharpe ratio to 0.267

D.

Yes because it increases portfolio's Sharpe ratio to 0.467

E.

No because it increases the risk of the portfolio

3. You have been following a stock for 4 months and the following is its past return

Year 1: 2%

Year 2: 19%

Year 3: 3%

Year 4: -5%

What is the expected return based on historical data? (Put answer in decimal points instead of percentage)

4. Your investment has a 30% chance of earning a 11% rate of return, a 40% chance of earning a 16% rate of return and a 30% chance of earning -4%. What is the standard deviation on this investment? (Put your answers in decimal points instead of percentage)

5. The returns of a mutual fund manager for the past 3 years are the following:

Year 1: 7%

Year 2: 14%

Year 3: -3%

What is the geometric average return of the fund for the past three years? Put return in decimal points instead of percentage.

6. You have been following a stock for 3 months and the following is its past return

Year 1: 13%

Year 2: 13%

Year 3: -8%

What is the standard deviation of the stock based on the historical data? (Put the answer in decimal points instead of percentage)

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