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Homen Question 1, P8-6 (similar ... Part 1 of 2 HW Score: 0%, 0 of 5 points O Points: 0 of 1 Save (Portfolio expected

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Homen Question 1, P8-6 (similar ... Part 1 of 2 HW Score: 0%, 0 of 5 points O Points: 0 of 1 Save (Portfolio expected rate of return) Barry Swifter is 60 years of age and considering retirement. Barry's retirement portfolio currently is valued at $750,000 and is allocated in Treasury bills, an S&P 500 index fund, and an emerging market fund as follows: D a. Based on the current portfolio composition and the expected rates of return given above, what is the expected rate of return for Barry's portfolio? b. Barry is considering a reallocation of his investments to include more Treasury bills and less exposure to emerging markets. If Barry moves all of his money from the emerging market fund and puts it in Treasury bills, what will be the expected rate of return on the resulting portfolio? a. Based on the current portfolio composition and the given expected rates of return, the expected rate of return for Barry's portfolio is [%. (Round to two decimal places.) Question 1, P8-6 (similar ... Part 1 of 2 HW Score: 0%, 0 of 5 points O Points: 0 of 1 d rate of return) Barry Swifter is 60 years of age and considering retirement. Barry's retirement portfc and is allocated in Treasury bills, an S&P 500 index fund, and an emerging market fund as follows: Data Table Expected $ Value Return Treasury bills 3.7% 53,000 S&P 500 Index Fund 8.4% 401,000 Emerging Market Fund 13.5% 296,000 (Click on the icon in order to copy its contents into a spreadsheet.) Print Done Homew Question 2, P8-7 (similar ... Part 1 of 5 HW Score: 0%, 0 of 5 points O Points: 0 of 1 Say (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment in one of two portfolios. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and retum as measured by the expected rate of return? Portfolio A Portfolio B Probability Return Probability Return 0.15 -3% 0.08 6% 0.57 18% 0.25 9% 0.28 23% 0.42 13% 0.25 15% (Click on the icon in order to copy its contents into a spreadsheet.) a. The expected rate of return for portfolio A is %. (Round to two decimal places.) Question 3, P8-11 (simila... Part 1 of 7 HW Score: 0%, 0 of 5 points O Points: 0 of 1 Save (CAPM and expected returns) a. Given the following holding-period returns, compute the average returns and the standard deviations for the Zemin Corporation and for the market. b. If Zemin's beta is 0.91 and the risk-free rate is 7 percent, what would be an expected return for an investor owning Zemin? (Note: Because the preceding retums are based on monthly data, you will need to annualize the returns to make them comparable with the risk-free rate. For simplicity, you can convert from monthly to yearly returns by multiplying the average monthly returns by 12.) C. How does Zemin's historical average return compare with the return you believe you should expect based on the capital asset pricing model and the firm's systematic risk? a. Given the holding-period returns shown in the table, the average monthly return for the Zemin Corporation is %. (Round to two decimal places.) Homen Question 1, P8-6 (similar ... Part 1 of 2 HW Score: 0%, 0 of 5 points O Points: 0 of 1 Save (Portfolio expected rate of return) Barry Swifter is 60 years of age and considering retirement. Barry's retirement portfolio currently is valued at $750,000 and is allocated in Treasury bills, an S&P 500 index fund, and an emerging market fund as follows: D a. Based on the current portfolio composition and the expected rates of return given above, what is the expected rate of return for Barry's portfolio? b. Barry is considering a reallocation of his investments to include more Treasury bills and less exposure to emerging markets. If Barry moves all of his money from the emerging market fund and puts it in Treasury bills, what will be the expected rate of return on the resulting portfolio? a. Based on the current portfolio composition and the given expected rates of return, the expected rate of return for Barry's portfolio is [%. (Round to two decimal places.) Question 1, P8-6 (similar ... Part 1 of 2 HW Score: 0%, 0 of 5 points O Points: 0 of 1 d rate of return) Barry Swifter is 60 years of age and considering retirement. Barry's retirement portfc and is allocated in Treasury bills, an S&P 500 index fund, and an emerging market fund as follows: Data Table Expected $ Value Return Treasury bills 3.7% 53,000 S&P 500 Index Fund 8.4% 401,000 Emerging Market Fund 13.5% 296,000 (Click on the icon in order to copy its contents into a spreadsheet.) Print Done Homew Question 2, P8-7 (similar ... Part 1 of 5 HW Score: 0%, 0 of 5 points O Points: 0 of 1 Say (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment in one of two portfolios. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and retum as measured by the expected rate of return? Portfolio A Portfolio B Probability Return Probability Return 0.15 -3% 0.08 6% 0.57 18% 0.25 9% 0.28 23% 0.42 13% 0.25 15% (Click on the icon in order to copy its contents into a spreadsheet.) a. The expected rate of return for portfolio A is %. (Round to two decimal places.) Question 3, P8-11 (simila... Part 1 of 7 HW Score: 0%, 0 of 5 points O Points: 0 of 1 Save (CAPM and expected returns) a. Given the following holding-period returns, compute the average returns and the standard deviations for the Zemin Corporation and for the market. b. If Zemin's beta is 0.91 and the risk-free rate is 7 percent, what would be an expected return for an investor owning Zemin? (Note: Because the preceding retums are based on monthly data, you will need to annualize the returns to make them comparable with the risk-free rate. For simplicity, you can convert from monthly to yearly returns by multiplying the average monthly returns by 12.) C. How does Zemin's historical average return compare with the return you believe you should expect based on the capital asset pricing model and the firm's systematic risk? a. Given the holding-period returns shown in the table, the average monthly return for the Zemin Corporation is %. (Round to two decimal places.)

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