Question
Suppose you have the following possible risky investments (A,B,C,D) and a risk free investment (RF) where the states have equal probability of occurring: Investment State
Suppose you have the following possible risky investments (A,B,C,D) and a risk free investment (RF) where the states have equal probability of occurring:
| Investment | State 1 | State 2 | State 3 | State 4 |
| A | -3 | 1 | 5 | 5 |
| B | 2 | 10 | 10 | -5 |
| C | 3.75 | 2.25 | 1.75 | -0.75 |
| D | 7 | 17 | -2 | -7 |
| RF | 1 | 1 | 1 | 1 |
What is the standard deviation of the Risk Free investment?
Suppose you have the following possible risky investments (A,B,C,D) and a risk free investment (RF) where the states have equal probability of occurring:
| Investment | State 1 | State 2 | State 3 | State 4 |
| A | -3 | 1 | 5 | 5 |
| B | 2 | 10 | 10 | -5 |
| C | 3.75 | 2.25 | 1.75 | -0.75 |
| D | 7 | 17 | -2 | -7 |
| RF | 1 | 1 | 1 | 1 |
What is the Sharpe Ratio of investment D?
Suppose you have the following possible risky investments (A,B,C,D) and a risk free investment (RF) where the states have equal probability of occurring:
| Investment | State 1 | State 2 | State 3 | State 4 |
| A | -3 | 1 | 5 | 5 |
| B | 2 | 10 | 10 | -5 |
| C | 3.75 | 2.25 | 1.75 | -0.75 |
| D | 7 | 17 | -2 | -7 |
| RF | 1 | 1 | 1 | 1 |
What is the expected return of an equal weighted portfolio of investments A and C?
Suppose you have the following possible risky investments (A,B,C,D) and a risk free investment (RF) where the states have equal probability of occurring:
| Investment | State 1 | State 2 | State 3 | State 4 |
| A | -3 | 1 | 5 | 5 |
| B | 2 | 10 | 10 | -5 |
| C | 3.75 | 2.25 | 1.75 | -0.75 |
| D | 7 | 17 | -2 | -7 |
| RF | 1 | 1 | 1 | 1 |
What is the standard deviation of an equal weighted portfolio of investments A and C?
Suppose you have the following possible risky investments (A,B,C,D) and a risk free investment (RF) where the states have equal probability of occurring:
| Investment | State 1 | State 2 | State 3 | State 4 |
| A | -3 | 1 | 5 | 5 |
| B | 2 | 10 | 10 | -5 |
| C | 3.75 | 2.25 | 1.75 | -0.75 |
| D | 7 | 17 | -2 | -7 |
| RF | 1 | 1 | 1 | 1 |
What is the Sharpe Ratio of an equal weighted portfolio of investment A and the risk free investment?
Suppose you have the following possible risky investments (A,B,C,D) and a risk free investment (RF) where the states have equal probability of occurring:
| Investment | State 1 | State 2 | State 3 | State 4 |
| A | -3 | 1 | 5 | 5 |
| B | 2 | 10 | 10 | -5 |
| C | 3.75 | 2.25 | 1.75 | -0.75 |
| D | 7 | 17 | -2 | -7 |
| RF | 1 | 1 | 1 | 1 |
What is the correlation coefficient between investment A and investment B?
Suppose you have the following possible risky investments (A,B,C,D) and a risk free investment (RF) where the states have equal probability of occurring:
| Investment | State 1 | State 2 | State 3 | State 4 |
| A | -3 | 1 | 5 | 5 |
| B | 2 | 10 | 10 | -5 |
| C | 3.75 | 2.25 | 1.75 | -0.75 |
| D | 7 | 17 | -2 | -7 |
| RF | 1 | 1 | 1 | 1 |
What is the Beta of investment C if investment A is the reference portfolio?
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Your Financial Well Being How To Get Your Financial Well Being With Smart Spending Habits
Authors: Fransisca Patten
1st Edition
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