Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you help me please? Below is the monthly return distribution of 3 different stocks, XU market index and Rf risk free financial asset (%).

image text in transcribed

can you help me please?

Below is the monthly return distribution of 3 different stocks, XU market index and Rf risk free financial asset (%). Stocks Months 1 2 3 4 5 6 7 8 9 10 11 12 X1 12.05 15.27 (4.12) 1.57 3.16 (2.79) (8.97) (1.18) 1.07 12.75 7.48 (0.94) X2 25.20 2.86 5.45 4.56 3.72 10.79 5.38 (2.97) 1.52 10.75 3.79 1.32 X3 31.67 15.82 10.58 (14.43) 31.98 (0.72) (19.64) (10.00) (11.51) 5.63 (4.67) (7.94) Market Index XU 12.28 5.99 2.41 4.48 4.41 4.43 (6.77) (2.11) 3.46 6.16 2.47 (1.15) Risk Free Asset R 4.60 4.60 4.60 4.60 4.60 4.60 4.60 4.60 4.60 4.60 4.60 4.60 In this context, explain and answer the following questions. a) Calculate the Beta coefficient for each financial asset. b) Calculate the correlation coefficient between all financial assets and interpret the correlation matrix taking into account the significance levels. c) Calculate the average return of the market. d) Calculate the risk premium. e) Calculate the individual risk of the market. f) Calculate the expected return and variance of the equal weight portfolio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Impact Investing Instruments Mechanisms And Actors

Authors: Wolfgang Spiess-Knafl Barbara Scheck

1st Edition

3319665553,3319665561

More Books

Students also viewed these Finance questions

Question

How much do your readers know about your topic?

Answered: 1 week ago