Finance 306: Financial Management Homework: Class 17 Homework Score: 0.67 of 1 pt 7 of 17 (12 completel P 11-9 (similar to) The last four years of retums for a stock are as shown here a. What is the average annual retur? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns ? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format a. What is the average annual return? The average return is % (Round to two decimal places) Enter your answer in the answer box and then click Check Answer CA 2 remaining HW scores on, 11:57 P 12-4 (similar to) You are considering how to invest part of your retirement savings. You have decided to put $400,000 interes stocks 68% of the money in GoldFinger (currently $25/share), 5% of the money in Moosehead (currently $85/share, and the remainder in Venture Associates (curry 4 Spore ColdFunger stock pour power drops to $50/share, and Venture Associales stock drops to $3 per share a. What is the new value of the portfolio? b. What return did the portfolio earn? c. If you don't buy or sell any shares after the price change, what are your new portfolio weights? a. What is the new value of the portfolio? The new value of the portfolio is (Round to the nearest dollar.) Finance 306: Financial Management Homework: Class 17 Homework Score: 0 of 1 pt P 12-14 (similar to) 13 of 17 (12 complete > Using the data from Table 123 . what is the volatility of an equally weighted portfolio of Care and Starbucks look? The volatility of the portfolios Round to one decimal place) Data Table TABLE 12.3 Estimated Annual Volatilities and Correlations for Selected Stocks Based on Monthly Returns, January 2009 December 2018) Coca-Cola 0.32 0.30 Standard Microsoft Starbucks Net Deviation 20% Microsoft 1 0.29 0.23 Starbucks 0.29 0.05 0.23 0.05 Coca-Cola 0.32 0.30 -0.04 McDonald's 0.33 0.00 Once 0.52 0.36 0.10 0.31 0.21 0.19 Source Authors' calculations based on data from the McDonald's 13% 0.33 0.40 0.00 0.53 1 0.22 0.24 Cisco 24% 0.52 0.36 0.10 0.11 0.22 23% 0.31 0.21 0.19 1 0.53 0.11 0.30 024 Print Done Enter your answer in the answer box and then click Check Answer All parts showing G Search or type URL % @ 2 3 $ 4 5 6 7 8 9 Finance 306: Financial Management Homework: Class 17 Homework 10/10/20 Score: 0 of 1 pt 15 of 1712.com HW Score 68.63, 11.67 of 17 pts P 12-16 (similar to) Arbor Systems and Gencore stocks both have a volatility of 415. Compute the wory of a portfolio withs invested in each stock in the correlation before the stocks 00.00-0-00 which cases is the volatility lower than that of the original stocks If the correlation is +1.00, the volatility of the portfolio is (Round to one decimal place) Finance 306: Financial Management Homework: Class 17 Homework Royal 1 10/16/20 Score: 0 of 1 pt 16 of 17 (12 complete HW Score: 68.60%, 1167 of 17 pts P 12-18 (similar to) O You have a portfolio with a standard deviation of 20% and an expected return of 17%. You we considering adding one of the two stocks in the flowing teater adding the stock you will 28% of your money in the we? your money in your existing portfolio, which one should you add? Expected Standard Correlation with Return Deviation Your Portfolio's Returns Stock A 21% 02 Stock B 12% 19% 0.6 Standard deviation of the portfolio with stock As % (Round to two decimal places) Finance 306: Financial Management Homework: Class 17 Homework Kol Royal & I 10/20 PM Score: 0 of 1 pt Save 17 of 17 (12 completely HW Score: 68.63%, 11.67 of 17 pts P 12-19 (similar to) 0 Your client has $90.000 invested in stock A She would like to build a two-wlock portfolio by investing another 500,000 in other stock or she wants a portfol with an expected return out at 15% and as a risposte but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected retum and standard deviation? Expected Return Standard Deviation Correlation with A 17% 46% B 14% 38% 0.17 14% 38% 0.28 The expected return of the portfolio with stock B > (Round to one decimal place.) 1.00 Finance 306: Financial Management Homework: Class 17 Homework Score: 0.67 of 1 pt 7 of 17 (12 completel P 11-9 (similar to) The last four years of retums for a stock are as shown here a. What is the average annual retur? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns ? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format a. What is the average annual return? The average return is % (Round to two decimal places) Enter your answer in the answer box and then click Check Answer CA 2 remaining HW scores on, 11:57 P 12-4 (similar to) You are considering how to invest part of your retirement savings. You have decided to put $400,000 interes stocks 68% of the money in GoldFinger (currently $25/share), 5% of the money in Moosehead (currently $85/share, and the remainder in Venture Associates (curry 4 Spore ColdFunger stock pour power drops to $50/share, and Venture Associales stock drops to $3 per share a. What is the new value of the portfolio? b. What return did the portfolio earn? c. If you don't buy or sell any shares after the price change, what are your new portfolio weights? a. What is the new value of the portfolio? The new value of the portfolio is (Round to the nearest dollar.) Finance 306: Financial Management Homework: Class 17 Homework Score: 0 of 1 pt P 12-14 (similar to) 13 of 17 (12 complete > Using the data from Table 123 . what is the volatility of an equally weighted portfolio of Care and Starbucks look? The volatility of the portfolios Round to one decimal place) Data Table TABLE 12.3 Estimated Annual Volatilities and Correlations for Selected Stocks Based on Monthly Returns, January 2009 December 2018) Coca-Cola 0.32 0.30 Standard Microsoft Starbucks Net Deviation 20% Microsoft 1 0.29 0.23 Starbucks 0.29 0.05 0.23 0.05 Coca-Cola 0.32 0.30 -0.04 McDonald's 0.33 0.00 Once 0.52 0.36 0.10 0.31 0.21 0.19 Source Authors' calculations based on data from the McDonald's 13% 0.33 0.40 0.00 0.53 1 0.22 0.24 Cisco 24% 0.52 0.36 0.10 0.11 0.22 23% 0.31 0.21 0.19 1 0.53 0.11 0.30 024 Print Done Enter your answer in the answer box and then click Check Answer All parts showing G Search or type URL % @ 2 3 $ 4 5 6 7 8 9 Finance 306: Financial Management Homework: Class 17 Homework 10/10/20 Score: 0 of 1 pt 15 of 1712.com HW Score 68.63, 11.67 of 17 pts P 12-16 (similar to) Arbor Systems and Gencore stocks both have a volatility of 415. Compute the wory of a portfolio withs invested in each stock in the correlation before the stocks 00.00-0-00 which cases is the volatility lower than that of the original stocks If the correlation is +1.00, the volatility of the portfolio is (Round to one decimal place) Finance 306: Financial Management Homework: Class 17 Homework Royal 1 10/16/20 Score: 0 of 1 pt 16 of 17 (12 complete HW Score: 68.60%, 1167 of 17 pts P 12-18 (similar to) O You have a portfolio with a standard deviation of 20% and an expected return of 17%. You we considering adding one of the two stocks in the flowing teater adding the stock you will 28% of your money in the we? your money in your existing portfolio, which one should you add? Expected Standard Correlation with Return Deviation Your Portfolio's Returns Stock A 21% 02 Stock B 12% 19% 0.6 Standard deviation of the portfolio with stock As % (Round to two decimal places) Finance 306: Financial Management Homework: Class 17 Homework Kol Royal & I 10/20 PM Score: 0 of 1 pt Save 17 of 17 (12 completely HW Score: 68.63%, 11.67 of 17 pts P 12-19 (similar to) 0 Your client has $90.000 invested in stock A She would like to build a two-wlock portfolio by investing another 500,000 in other stock or she wants a portfol with an expected return out at 15% and as a risposte but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected retum and standard deviation? Expected Return Standard Deviation Correlation with A 17% 46% B 14% 38% 0.17 14% 38% 0.28 The expected return of the portfolio with stock B > (Round to one decimal place.) 1.00