Question
Use the following scenario analysis for stocks X and Y to answer the questions. Bear Normal Bull Market Market Market Probability 35.00% 55.00% 10.00% Stock
Use the following scenario analysis for stocks X and Y to answer the questions.
| Bear | Normal | Bull | |
| Market | Market | Market | |
| Probability | 35.00% | 55.00% | 10.00% |
| Stock X | -28.00% | 9.00% | 30.00% |
| Stock Y | -16.00% | 15.00% | 50.00% |
Assume you have a $200,000 portfolio and you invest $80,000 in stock X and the remainder in stock Y. If the riskfree rate of return is 3.75%, and we assume that the standard deviation of the excess returns on the portfolio is 15%, what is the Sharpe Ratio for this portfolio formed from stocks X and Y? Enter your answer rounded to two decimal places. For example, if your answer is 123.45% or 1.2345 then enter as 1.23 in the answer box.
Use the following scenario analysis for stocks X and Y to answer the questions.
| Bear | Normal | Bull | |
| Market | Market | Market | |
| Probability | 35.00% | 55.00% | 10.00% |
| Stock X | -28.00% | 9.00% | 30.00% |
| Stock Y | -16.00% | 15.00% | 50.00% |
Assume you have a $200,000 portfolio and you invest $80,000 in stock X and the remainder in stock Y. What is the expected return for this portfolio? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
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Re Imagining Offshore Finance
Authors: Christopher M. Bruner
1st Edition
0190466871, 978-0190466879
