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Solve please and show calculations. Thank you Question 5 5 pts Over the past six years, a stock had annual returns of 2 percent, -5
Solve please and show calculations. Thank you
Question 5 5 pts Over the past six years, a stock had annual returns of 2 percent, -5 percent, 6 percent, 3 percent, 3 percent, and -2 percent, respectively. What is the standard deviation of these returns? 3.61 percent 3.97 percent 3.88 percent 3.33 percent O 3.29 percent Question 16 8 pts Given the following information, what is the standard deviation for this stock? (Hint: you'll need to find the expected return first) Probabilities: Recession: 0.3 Normal: 0.4 Boom: 0.3 Returns: Recession: -9% Normal: 7.5% Boom: 16% 09.88% 09.18% O 8.42% 11.35% 7.38% Question 17 5 pts You own a portfolio that is invested 35 percent in stock A, 25 percent in stock B, and the remainder in stock C. The expected returns on these stocks are 12.75 percent, 16.5 percent, and 10 percent, respectively. What is the expected return on the portfolio? 0 14.55% O 16.28% 0 12.59% 13.09% Question 18 5 pts You are considering investing in a project with the following possible outcomes: Calculate the expected rate of return and standard deviation of returns for this investment, respectively. Probabilities: Boom:0.1 Normal:0.45 Decline:0.35 Depression:0.1 Returns: Boom:12% Normal:9% Decline: 1% Depression:-8% O 5.25%, 7.04% 0 4.8%, 5.88% O 4.3%, 7.81% O 8.4%, 5.33% Question 19 5 pts You own a portfolio that has 40% invested in asset A, and 60% invested in asset B. Asset A's standard deviation is 10% and asset B's standard deviation is 16%. The correlation coefficient between the two assets is 0.12. The expected return on the portfolio is 16%. What is the portfolio standard deviation? 7.3% 10.8% 6.45% 8.1%Step by Step Solution
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