Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

May I have the while soultion for question 1 (all the sub Q as well) Thanks a lot Question 1 a)Suppose you invest in 98

May I have the while soultion for question 1 (all the sub Q as well) Thanks a lot image text in transcribed
image text in transcribed
Question 1 a)Suppose you invest in 98 shares of Aibaba (BABA) at $88 per share and 209 shares of Baidu (BIDU) at $94 per share. If the price of Alibaba shares moves to $135 and the price of Baidu moves to $79 per share, what is the return on your portfolio? Please input your response in percent rounded to two decimal places without the percent sign. b)Chrysler had realized returns of 18%,26%,27%, and 19% over four quarters. What is the quarterly standard deviation of retums for Chrysler calculated from this sample? Please input your response in percent rounded to two decimal places without the percent sign. c)Consider the following price and dividend data for Quicksilver Inc:: Assume that you purchased Quicksilver's stock at the closing price on December 31, 2004, and sold it at the closing price on December 30,2005 . Your realized annual return for the year 2005 is closest to: Please input your response in percent rounded to two decimal places without the percent sign. d)Consider the following returns: What is the correlation between Lowes' and Home Depot's returns? Please input your response rounded to three decimal places. e)Consider an economy with two types of firms, S and L. S firms always move together, but I firms move indeperdently. For both types of firms, there is a 68% probabdity that the firm will have a 20% retum. Otherwise, the firm will have a 20% return. The standard deviation for the return on a portfolio of 20 type S firms is closest to: Please input your response in percent rounded to three decimal places without the percent sign

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

Contemporary Issues In Development Finance

Authors: Joshua Yindenaba Abor, Robert Lensink, Charles Komla Delali Adjasi

1st Edition

1138324329, 978-1138324329

More Books

Students also viewed these Finance questions