Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello I would love some help with these ASAP thank you so much! Linear combinations: 1. Returns on stocks X and Y are listed below:

Hello I would love some help with these ASAP thank you so much!

Linear combinations:

1. Returns on stocks X and Y are listed below:

Period 1 2 3 4 5 6 7

Stock X 8 % 0% 3% -2% 5% 12% 7%

period 1 2 3 4 5 6 7

Stock Y 5% -2 4% 7% 1% 12% -3%

What is the (population) covariance of returns on the two stocks?

Please round your answer to six decimal places.

Note that the correct answer will be evaluated based

on the full-precision result you would obtain using Excel.

2. Returns on stocks X and Y are listed below:

Period 1 2 3 4 5 6 7

Stock X 7% 1% -2% -3% 5% 11% 5%

Period 1 2 3 4 5 6 7

Stock Y -4% 10% 4% 8% 7% -1% 3%

Consider a portfolio of 10% stock X and 90% stock Y.

What is the mean of portfolio returns?

Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).

3. Returns on stocks X and Y are listed below:

Period 1 2 3 4 5 6 7

Stock X 4% 7% -2% 40% 0% 10% -1%

Period 1 2 3 4 5 6 7

Stock Y 2% -5% 7% 4% 6% 11% -4%

Consider a portfolio of 60% stock X and 40% stock Y.

What is the (population) variance of portfolio returns?

Please round your answer to six decimal places.

Note that the correct answer will be evaluated based

on the full-precision result you would obtain using Excel.

4. Summary statistics for returns on two stocks X and Y are listed below.

Stock X Mean Variance

3.16% 0.005000

Stock Y Mean Variance

2.97% 0.004000

The covariance of returns on stocks X and Y is 0.002700. Consider a portfolio of 60% stock X and 40% stock Y.

What is the mean of portfolio returns?

Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).

5. Summary statistics for returns on two stocks X and Y are listed below.

Stock X Mean Variance

4.88% 0.005000

Stock Y Mean Variance

3.72% 0.007000

The covariance of returns on stocks X and Y is 0.001500. Consider a portfolio of 80% stock X and 20% stock Y.

What is the standard deviation of portfolio returns?

Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).

Note that the correct answer will be evaluated based

on the full-precision result you would obtain using Excel.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Methods In Electromagnetism

Authors: Cessenat Michel

1st Edition

9810224672, 9789810224677

More Books

Students also viewed these Mathematics questions