Question
Finance: Please answer all. Please ensure that your calculations are correct. Thank you very much Question 1: Question 2: 2a. What is the average annual
Finance: Please answer all. Please ensure that your calculations are correct. Thank you very much
Question 1:
Question 2:
2a. What is the average annual return? The average return is how many %.? (Round to two decimal places.)
2b. What is the variance of the stock's returns?
2c. What is the standard deviation of the stock's returns?
Question 3:
3.a) What is the return of stock A in percentage? (Round to 2 decimal places)
3.b) What is the return of stock B in percentage? (Round to 2 decimal places)
3.c) What is the volatility of stock A?
3.d) What is the volatility of stock B?
Question 4 :
Question 5:
5.a) What is the expected return of the portfolio with stock A in percentage? Round to one decimal place
5.b) What is the expected return of the portfolio with stock B in percentage? Round to one decimal place
5.c) What is the expected return of the portfolio with stock C in percentage? Round to one decimal place
5.d) What will be the standard deviation of stock A?
5.e) What will be the standard deviation of stock B?
5.f) What will be the standard deviation of stock C?
5g) What will you advise her to do?
Using the data in the table, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. Return for the entire period is %. (Round to two decimal places.) The last four years of returns for a stock are as follows: Using the data in the following table, estimate the average return and volatility for each stock a spreadsheet.) The return of stock A is %. (Round to two decimal places.) Using the data in the following table, and the fact that the correlation of A and B is 0.56 , calculate the volatility (standard deviation) of a portfolio that is 80% invested in stock A and 20% invested in stock B. (Click the following icon to copy its contents into a spreadsheet.) The standard deviation of the portfolio is %. (Round to two decimal places.) Your client has $97,000 invested in stock A. She would like to build a two-stock portfolio by investing another $97,000 in either stock B or C. She wants a portfolio with an expected return of at least 14.5% and as low a risk as possible, but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected return and standard deviation? The expected return of the portfolio with stock B is \%. (Round to one decimal place.)
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