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Question 5,6,7,8 5 5 Which of the following stocks is the most attractive investment, based on their return-per-unit-of-risk: Boeing Aerospace (BA) had a return of
Question 5,6,7,8
5 5 Which of the following stocks is the "most attractive investment", based on their return-per-unit-of-risk: Boeing Aerospace (BA) had a return of 5% and a volatility (annual standard deviation) of 4%, Raytheon (RTN) had a return of 8% and a volatility of 12%, General Dynamics (GD) had a return of 15% and a volatility of 13%. 6 You own a portfolio comprised of the following three stocks: $75,000 Boeing Aerospace, $60,000 Raytheon, and $65,000 General Dynamic. The expected returns on these stocks are as follows: BA 5%, RTN 8%, GD 15%. What is the portfolio weight of GD? 7 You own a portfolio comprised of the following three stocks: $75,000 Boeing Aerospace, $60,000 Raytheon, and $65,000 General Dynamic. The expected returns on these stocks are as follows: BA 5%, RTN 8%, GD 15%. What is the expected % return on the portfolio? 8 You own a portfolio comprised of the following three stocks: $75,000 Boeing Aerospace, $60,000 Raytheon, and $65,000 General Dynamic. The expected returns on these stocks are as follows: BA 5%, RTN 8%, GD 15%. One year later, the actual returns on the stocks equals the expected returns. What is the new value of the portfolioStep by Step Solution
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