Question

You have $10,000 and want to invest $4,000 in Stock A, and $6,000 in Stock B....

You have $10,000 and want to invest $4,000 in Stock A, and $6,000 in Stock B.

Probability Rate of Return
A B
0.5 8% 16%
0.5 12% 6%

What is coefficient variation for Stock A and Stock B?

What is the co-variance between Stock A and Stock B?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Currently you have $6,000 in a portfolio with a beta of 1.4. If you invest an...
Currently you have $6,000 in a portfolio with a beta of 1.4. If you invest an additional $4,000 in a stock, what will the beta of the stock have to be to make your portfolio beta equal to 1.24?
You have $300,000 to invest in two stocks and want an expected portfolio return of 12%....
You have $300,000 to invest in two stocks and want an expected portfolio return of 12%. Stock A has an expected return of 5% and Stock B has an expected return of 16%. How much must you invest in each stock to reach your portfolio return goal? A. $133,333 in Stock A and $166,667 in Stock B B. $25,000 in Stock A and $275,000 in Stock B C. $75,000 in Stock A and $225,000 in Stock B D. $109,091 in...
1) Suppose you have $100,000 to invest in a PORTFOLIO OF TWO stocks: Stock A and...
1) Suppose you have $100,000 to invest in a PORTFOLIO OF TWO stocks: Stock A and Stock B. Your analysis of the two stocks led to the following risk -return statistics: Expected Annual Return Beta Standard Deviation A 18% 1.4 25% B 12% 0.6 16% The expected return on the market portfolio is 7% and the risk free rate is 1%. You want to create a portfolio with NO MARKET RISK. a) How much (IN DOLLARS) should you invest IN...
You have $300,000 to invest in two stocks and want an expected portfolio return of 15%....
You have $300,000 to invest in two stocks and want an expected portfolio return of 15%. Stock A has an expected return of 8% and Stock B has an expected return of 21%. How much must you invest in each stock to reach your portfolio return goal?
You have $150,000 to invest in a stock portfolio. Your choices are stock A with an...
You have $150,000 to invest in a stock portfolio. Your choices are stock A with an expected return of 16% and stock B with an expected return of 10%. Your goal is to create a portfolio with an expected return of 14%. How much money do you invest in stock B? Answer provided: $50,000 Why, what is the formula?
You are considering three stocks.  Stock A has an expected return of 5%.  Stock B has an expected...
You are considering three stocks.  Stock A has an expected return of 5%.  Stock B has an expected return of 12%.  Stock C has an expected return of 16%.  You have the following variance-covariance matrix. Stock A Stock B Stock C Stock A .070 .050 -.060 Stock B .050 .100 -.025 Stock C -.060 -.025 .170 Calculate the expected return and portfolio variance assuming you invest $100,000 in stock A, $200,000 in stock B, and $300,000 in stock C. How does this answer in...
The following probability distributions of return for Stock X have been estimated: Probability Stock X 0.3...
The following probability distributions of return for Stock X have been estimated: Probability Stock X 0.3 6% 0.4 9% 0.3 12% I. Calculate the expected rate of return ( ), standard deviation ( ), and the coefficient of variation (CV) for Stock X. The following probability distributions of return for Stock Y have been estimated: Probability Stock Y 0.3 3% 0.4 4% 0.3 5% II. Calculate the expected rate of return ( ), standard deviation ( ), and the coefficient...
Suppose you want to invest $ 1 million and you have two assets to invest in:...
Suppose you want to invest $ 1 million and you have two assets to invest in: Risk free asset with return of 12% per year and a risky asset with expected return of 30% and standard deviation of 40%. If you want a portfolio with standard deviation of 30% how much do you invest in each of the assets?
You have $100,000 to invest. You can invest in stock of ABC and earn 12% return....
You have $100,000 to invest. You can invest in stock of ABC and earn 12% return. You can also borrow at the risk-free rate of 6%. How can you invest (weight) so that you can make 15% return? Q- How much will you invest in ABC and how much you need to borrow? (in amounts). Q- Use the same information given in the last problem, how can you make 18% return?
Portfolio Expected ReturnYou have $10,000 to invest in a stock portfolio. Your choices are Stock X...
Portfolio Expected ReturnYou have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 12.7 percent and Stock Y with an expected return of 9.1 percent. If your goal is to create a portfolio with an expected return of 11.2 percent, how much money will you invest in Stock X? In Stock Y?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT