Question

If you have a portfolio with the following returns: 2015 22% 2016 22% 2017 22% 2018...

If you have a portfolio with the following returns:

2015 22%

2016 22%

2017 22%

2018 22%

2019 22%

The standard deviation would be ________ and its correlation coefficient would be expected to be _________

Homework Answers

Answer #1

Standard deviation would be deviations of Return of stock from the mean so when there is no deviation from the mean as the average of Return would be 22% and standard deviation would be NIL, because there is no deviation from the average mean.

The correlation coefficient would be equal to 1 because the returns are completely replicating each other so it is always moving in similar direction, it can be said that when the two years return are similar and moving in same direction, it would be said to be e having a perfect positive correlation of +1.

Correct answer is-

Standard deviation= NIL

Correlation coefficient= +1

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2014 (21.20 %) (12.80 %) 2015 34.00 16.00 2016 12.50 34.30 2017 (1.75 ) (14.20 ) 2018 27.50 27.75 Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A:   % Stock B:   % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B....
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2014 (22.20 %) (16.50 %) 2015 26.75 17.90 2016 14.00 36.90 2017 (3.25 ) (14.60 ) 2018 31.75 23.35 Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A:   % Stock B:   % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B....
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2014 (20.90 %) (13.60 %) 2015 27.75 25.40 2016 13.50 39.10 2017 (4.75 ) (5.10 ) 2018 25.50 -4.70 Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A:   % Stock B:   % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B....
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2014 (22.80%) (12.90%) 2015 28.75 18.70 2016 17.50 30.70 2017 (2.25) (14.20) 2018 28.50 27.40 Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A: ??? % Stock B: ??? % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B....
Returns on Goode company stocks were as follows: 2015: 17.80% 2016: 2.94% 2017: 23.43% 2018: 29.13%...
Returns on Goode company stocks were as follows: 2015: 17.80% 2016: 2.94% 2017: 23.43% 2018: 29.13% 2019: -1.17% What was the 5-year holding period return for Goode company’s stocks over this period?
Corley has the following general business credit carryovers: 2015: $12,000 2016:   $9,000 2017: $14,000 In 2018,...
Corley has the following general business credit carryovers: 2015: $12,000 2016:   $9,000 2017: $14,000 In 2018, his total general business credit is $55,000 and the total credit allowed in 2018 (based on tax liability) is $70,000. What is the amount of the general business credit carryover (by year) to 2019? If amount is zero, enter "0". 2015 carryover to 2019: $ 2016 carryover to 2019: $ 2017 carryover to 2019: $ 0 2018 carryover to 2019: $
2019 2018 2017 2016 2015 Sales $ 442,210 $ 285,297 $ 222,021 $ 153,648 $ 116,400...
2019 2018 2017 2016 2015 Sales $ 442,210 $ 285,297 $ 222,021 $ 153,648 $ 116,400 Cost of goods sold 223,505 144,349 114,161 78,174 58,200 Accounts receivable 21,359 16,718 15,231 8,942 7,950 Compute trend percents for the above accounts, using 2015 as the base year. Trend Percent for Net Sales: Choose Numerator: / Choose Denominator: / = Trend percent 2019: / = % 2018: / = % 2017: / = % 2016: / = % Trend Percent for Cost of...
""Compute MACRS allowable for Oak Co. for its tax returns for 2015, 2016, 2017 and 2018....
""Compute MACRS allowable for Oak Co. for its tax returns for 2015, 2016, 2017 and 2018. All items were placed in service when purchased unless stated otherwise. In February 2015 Oak purchased five Office desks (five year items) cost 40,000 each. Because Oak made very little money in 2015 the accountants decided it would be best to decline all special write-offs in 2015. In December 2017 Oak moved to a smaller office and put two of the desks out for...
Consider the following historical rates of return:                          Year   Stock X returns   &nb
Consider the following historical rates of return:                          Year   Stock X returns                              2014 -0.12                            2015                0.04                                     2016               -0.01                                      2017 0.05                         2018               0.10    2019 0.08 a.  Find standard deviation of these returns. b. Find coefficient of variation (CV). show all work manually!
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Return rB 2013 -22.70% -15.00% 2014 23.00 16.40 2015 10.25 36.00 2016 -5.75 -9.30 2017 33.50 10.20 Calculate the average rate of return for Stock A during the period 2013 through 2017. Round your answer to two decimal places.______% Calculate the average rate of return for Stock B during the period 2013 through 2017. Round your answer to two decimal places.______% Assume that someone...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT