Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 17 Not wat saad Marked it of 12.00 Question 2 (total of 12 marks): Refer to the below table to answer the questions that

image text in transcribed

Question 17 Not wat saad Marked it of 12.00 Question 2 (total of 12 marks): Refer to the below table to answer the questions that follow. Assume that returns are effective annual rates or net discrete returns Stock and Market Portfolio Effective Annual Returns Year Return on Stock A Return on Market Portfolio 2017 0.22 0.30 2018 0.16 0.07 2019 0.15 0.28 ** F question Provide answers as decimals rounded to 6 decimal places. For example, if your answer is 0.23456789, write it as 0.234568 Question 2a (1 marks): What is stack A's past arithmetic average net discrete return? Answers: Question 2b (1 marks): What is the market's past arithmetic average net discrete return? Answers: Question 2c (2 marks): What is the sample arithmetic standard deviation of stock A's net discrete returns? Answers: Question 2d (2 marks]: What is the sample arithmetic standard deviation of the market portfolio's returns? Answers: Question 2e (2 marks): What is the covariance of stock A's retums with the market portfolio? Answers: Question 2 (1 marks): What is the correlation of returns between stock A and the market? Answers Question 29 (1 marks): What is the beta of stock A? Answers: Question 2h (2 marks): What is the diversifiable variance of stock A? Answers

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_2

Step: 3

blur-text-image_3

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

Basic Finance An Introduction To Financial Institutions Investments And Management

Authors: Herbert B. Mayo, Michael J Lavelle

13th Edition

0357714741, 978-0357714744

More Books

Students also viewed these Finance questions