Question
Can you please show steps with the math. You put half of your money in a stock portfolio that has an expected return of 14%
Can you please show steps with the math.
You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%. You put the rest of you money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock and bond portfolio have a correlation 0.55. The standard deviation of the resulting portfolio will be _________________.
An investment earns 10% the first year, 15% the second year and loses 12% the third year. Your total compound return over the three years was _______.
Suppose you pay $9,800 for a $10,000 par Treasury bill maturing in two months. What is the effective annual rate of return for this investment?
You have a $50,000 portfolio consisting of Intel, GE and Con Edison. You put $20,000 in Intel, $12,000 in GE and the rest in Con Edison. Intel, GE and Con Edison have betas of 1.3, 1.0 and 0.8 respectively. What is your portfolio beta?
Consider the following two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.20. Stock B has an expected return of 14% and a beta of 1.80. The expected market rate of return is 9% and the risk-free rate is 5%. Security __________ would be considered a good buy because __________.
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