filling amounts are correct, please help me with the rest. thanks
Suppose your expectations regarding the stock market are as follows: State ofthe Economy Probabity HFR Boom i] 2 37% Normal growi I] B 2 Recession I] 2 2i] E(rJ = 2 ports S we 5 a2 = 31 poms) Em]: SDG' 5 cr = VVaI(r) Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not. round intermediate calculations. Round your answers to 2 decimal plaoes.) Mean 16.60 '96: Standard deviation '96: XYZ stock price and dividend history are as foilows: Begi'lningofe'l'ear Pl'ioe Dmdend Paid at Year- Year End 201 El 35 134 $ 3 2011 5 150 5 3 2012 $ 125 $ 3 2013 5 I30 5 3 An investor buys ve shares of XYZ at the beginning of 2010, buys another two shares at the beginning of 2011, seils one share at the beginning of 2012, and sells all six remaining shares at the beginning of 2013, a. What are the arithmetic and geometric average timeweighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic mean 19? '91: Geometric mean 120 '91: i b-1. Prepare a chart of cash ows forthe four dates corresponding to the tums of the yearfor January 1, 2010, to January 1, 2013. (Negative amounts should be indicated by a minus sign.) Date Cash FlowI 1F11'20 10 $ on] 1f1i2011 7235 "1120 12 146 11112013 801 h-2. What is the doIIaH/veighted rate or return? (Hint If your calculator cannot calculate internal rate or return, you wiil have to use a spreadsheet or trial and error) [Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) Rate of return % Assume that you manage a risky portfolio with an expected rate of return of 13% and a standard deviation of 45%. The T-bill rate is 5% Your client chooses to invest 75% of a portfolio in your fund and 25% in a TDill money market fund. a. What is the expected return and standard deviation of your client's portfolio? (Round your answers to 2 decimal places.) Expected retum "A: per year Standard deviation "A: per year I). suppose your risky portfolio includes the following investments in the given proportions: Stock A 29% Stock B 35% Stock C 33% ' What are the investment proportions of your client's overall portfolio. including the position in T-bills'? [Round your answers to 2 decimal places.) Investment Securiy Proportions T-Bills "it: Stock A % Stock B Bi; Stock (3 % l c. What is the reward-to-volatllity ratio (3) of your risky portlolio and your client's overall portfolio? [Round youranswers to 4- decimal places.) Renard-IoVolatil' Ratio Risky portfolio Client's overall portfolio Assume that you manage a risky portlolio With an expected rate of return of 20% and a standard deviation of 44%. The T-bill rate is 4% Your n'sky portfolio includes the following investments in the given proporliohs: Stock A 28% Stock E 37% Stock C 35% [ Your client decides to invest in your risky portfolio a proportion (y) of his totai investment budget with the remainder in a T-bill money market fund so that his overall portlolio will have an expected rate of return of 16%, a. What is the proportion y? [Round your answer to 2 decimal places.) Pro porlio n y b. What are your client's investment proportions in your three stocks and the Thin fund? (Round your intermediate calculations and nal answers to 2 decimal places.) Investment Securiy Promrlions TBiIIs '39 Stock A '38 Stock B '33 Stock C % [ G. What is the standard deviation of the rate of retum on your client's le'TIfOIiD'? [Round your intermediate calculations and nal answer 1.0 2 decimal PIECES.) Standard deviation % per year