for the first question, the options are 0.03, 1.40, 2, 0.35.
for the first part of the third question, the options are 13.20, 0.04400, 7.19, 10.70.
for the second part of the third question, the options are 4.40, 9.77, 1.91, 10.70
Next, consider a two-asset portfolio consisting of stock A with wA=10% and an expected return rA=8% and a standard deviation of A=10%, and stock B with rN=11% and N=4%. Assuming that the correlation between stocks A and B is pAB=0.75, the expected return to the portfolio is , and the portfolio's standard deviation is 4.40 . data? The expected return to the portfolio is higher. 1.91 The expected return to the portfolio is lower. The risk associated with the portfolio is lower. Suppose that the standard deviation of returns for a single stock A is A=40%, and the standard deviation of the market return is M=20%. If the correlation between stock A and the market is AM=0.7, then the stock's beta is Is it reasonable to expect that the volatility of the market portfolio's future expected returns will be greater than the volatility of stock A's returns? Yes No Next, consider a two-asset portfolio consisting of stock A with wA=10% and an expected return rA=8% and a standard deviation of A=10%, and stock B with rB=11% and B=4%. Assuming that the correlation between stocks A and B is pAB=0.75, the expected return to the portfolio is , and the portfolio's standard deviation is Suppose that the correlation between stocks A and B is PAB=1, instead of pAB=0.75. Which of the following statements correctly reflects the new data? The expected return to the portfolio is higher. The risk associated with the portfolio is the same as when the correlation is AB=0.75. The expected return to the portfolio is lower. The risk associated with the portfolio is lower. 6. Calculating a beta coefficient for a single stock Suppose that the standard deviation of returns for a single stock A is A=40%, and the standard deviation of the market return is M=20%. If the correlation between stock A and the market is AN=0.7, then the stock's beta is Is it reasonable to expect that the volatility of the market portfolio's future expected returns will be greater than the volatility of stock A's returns? Yes No Next, consider a two-asset portfolio consisting of stock A with wA=10% and an expected return rA=8% and a standard deviation of A=10%, and stock B with rW=11% and B=4%. Assuming that the correlation between stocks A and B is A=0.75, the expected return to the portfolio is , and the portfollo's standard deviation is Suppose that the correlation between stocks A and B is p,A=I1, instead of pAa=0.75. Which of the following statements correctly reflects the new data? The expected return to the portfolio is higher. The risk associated with the portfolio is the same as when the correlation is pAn=0.75. The expected return to the portfolio is lower. The risk associated with the portfolio is lower. Suppose that the correlation between stocks A and B is PAB=1, instead of pAB=0.75. Which of the following statements correctly refiects the new data? The expected return to the portfolio is higher. The risk assoclated with the portfolio is the same as when the correlation is pA=0.75. The expected return to the portfolio is lower. The risk associated with the portfolio is lower. 6. Calculating a beta coefficient for a single stock Suppose that the standard deviation of returns for a single stock A is A=40%, and the standard deviation of the market return is M=20%. If the correlation between stock A and the market is AM=0.7, then the stock's beta is Is it reasonable to expect that the volatility of the market portfolio's future expect 0.03 hs will be greater than the volatility of stock A's returns? Yes \begin{tabular}{|l|} 1.40 \\ \hline 2.00 \\ \hline 0.35 \\ \hline \end{tabular} Next, consider a two-asset portfolio consisting of stock A with wA=10% and an expected return rA=8% and a standard deviation of A=10%, and stock B with rB=11% and B=4%. Assuming that the correlation between stocks A and B is pAA=0.75, the expected return to the portfolio is , and the portfolio's standard deviation is : the correlation between stocks A and B is pA=1, instead of pA=0.75. Which of the following statements correctly reflects the new expected return to the portfolio is higher. z risk associated with the portfolio is the same as when the correlation is pAB=0.75. The expected return to the portfolio is lower. The risk associated with the portfolio is lower
