Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

REALLY NEED HELP WITH THESE 3 QUESTIONS PLEASE 1.Stock A has an expected return of 10% and a standard deviation of 35%. Stock B has

REALLY NEED HELP WITH THESE 3 QUESTIONS PLEASE 1.Stock A has an expected return of 10% and a standard deviation of 35%. Stock B has an expected return of 17% and a standard deviation of 55%. The correlation coefficient between Stocks A and B is 0.2. What is the expected return of a portfolio invested 30% in Stock A and 70% in Stock B? Round your answer to two decimal places.

What is the standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B? Round your answer to two decimal places.

2.APT An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free rate is 6%, the expected return on the first factor (r1) is 14%, and the expected return on the second factor (r2) is 9%. If bi1 = 0.7 and bi2 = 0.9, what is Crisp's required return? Round your answer to two decimal places.

3.Problem 3-1 Beta The standard deviation of stock returns for Stock A is 42%. The standard deviation of the market return is 25%. If the correlation between Stock A and the market is 0.80, then what is Stock A's beta? Round your answer to two decimal places.

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

Finance Growth And Inequality

Authors: Louis-Philippe Rochon, Virginie Monvoisin

1st Edition

1788973682, 978-1788973687

More Books

Students also viewed these Finance questions

Question

The models used to analyse different national cultures.

Answered: 1 week ago

Question

The nature of the issues associated with expatriate employment.

Answered: 1 week ago