Question

Use the following information to answer questions 1 through 10:

You are trying to form portfolios based on the following information:

State |
Probability |
Return A |
Return B |

Poor |
20.0% |
-4.0% |
-4.0% |

Normal |
40.0% |
3.0% |
8.0% |

Good |
30.0% |
10.0% |
8.0% |

Very Good |
10.0% |
30.0% |
10.0% |

You also know the risk-free rate is 5%.

Use the following information for questions 6 to 9. Suppose we construct a portfolio with 20% of Stock A and 80% Stock B.

Question 6: Calculate the Expected Return of the Portfolio

Question 7: Calculate the Standard Deviation of the Portfolio

Question 8: Calculate the Sharpe Ratio of the Portfolio

Answer #1

You are trying to form portfolios based on the following
information:
State
Probability
Return A
Return B
Poor
20.0%
-4.0%
-4.0%
Normal
40.0%
3.0%
8.0%
Good
30.0%
10.0%
8.0%
Very Good
10.0%
30.0%
10.0%
You also know the risk-free rate is 5%.
Question 1: Calculate the Expected Returns for both Stock A and
Stock B
Question 2: Calculate the Standard Deviation for both Stock A
and Stock B
Question 3: Calculate the Sharpe Ratios of both Stock A and
Stock...

1.Consider portfolios that can be
formed using the stock X and Y with the necessary information in
the following table. The risk-free rate is 1%. Determine the Sharpe
ratio of the portfolio with the weight of 0.6 on X and 0.4 on
Y.
RETURN ON X (%). RETURN ON Y (%)
MEAN
6 10
STANDARD DEVIATION
8 12
CORRELATION
0.2

HW #6
1. Use the following information to answer the
questions.
State
Probability
Stock A return
Stock B return
Good
Normal
Bad
0.3
0.6
0.1
8%
2%
-3%
5%
1%
-1%
(a). Given that you form a portfolio by investing $4,000 in
Stock A and $1,000 in Stock B, what is the expected return on your
portfolio?
(b).What is the variance and standard deviation of your
portfolio?
(c). Suppose that Stock A has a beta of 1.5 and Stock B...

Assume that you have the following information:- Market Info:-
Real interest rate = 2.0%; Expected inflation = 4.0%; Rm = 12.0%;
Tax = 30.0%. Com. Stock info:- Par value = $1.0 ; Market value
(price) = ?? ; Beta = 1.60 ; No. of outstanding shares =
1,000,000.0 ; EPS $3.0 ; pay-out ratio = 30.0%; Growth in EPS &
Dividends = 5.0% ; Preferred Stock info:- Par value = $100.0;
Dividend per share = 10.0%; Rp=8.0%; No. of outstanding...

1. Answer the following questions. Assume a two-stock portfolio
XY is created with $6000 invested in security X and $9000 in
security Y. The expected return and the variance for Portfolio XY
is 23.32% and 0.45%, respectively. What is the coefficient of
variation for Portfolio XY?
Select one:
a. 0.67
b. 0.43
c. 0.24
d. 0.47
e. 0.29
2. Continued from previous question. Assume the yield curve is
flat and the T-bill rate is 5%. The market risk premium is...

Answer the following questions. Assume a two-stock portfolio XY
is created with $6000 invested in security X and $9000 in security
Y. The expected return and the variance for Portfolio XY is 23.32%
and 0.45%, respectively. What is the coefficient of variation for
Portfolio XY?
Select one:
a. 0.67
b. 0.24
c. 0.43
d. 0.47
e. 0.29
Question 2
Continued from previous question. Assume the yield curve is flat
and the T-bill rate is 5%. The market risk premium is...

Use the following scenario analysis for stocks X and Y to answer
the questions.
Bear
Normal
Bull
Market
Market
Market
Probability
20.00%
45.00%
35.00%
Stock X
-13.00%
11.00%
28.00%
Stock Y
-26.00%
16.00%
46.00%
Assume you have a $200,000 portfolio and you invest $75,000 in
stock X and the remainder in stock Y. If the risk–free rate of
return is 3.50%, and we assume that the standard deviation of the
excess returns on the portfolio is 18%, what is the...

Use the following information to answer the two questions
below.
State
of
Prob. of
the
Rate of return if state occurs
the
economy state
of
economy
Stock
A Stock B
Boom
0.40
0.12
0.04
Bust
0.60
0.02
0.04
You MUST use 4 digits in every calculation you do in
order for your answer to be the same as the one in the system.
Enter answer using 4 decimals. Do not use or enter...

Use the following information for the next 2 questions:
Stock
Value
E(R)
St. Dev
Walmart
$21,000
6%
9%
Netflix
$49,000
10%
12%
47) What is the expected return of this portfolio?
Question 47 options:
6.4%
8.8%
9.6%
11.2%
What is the standard deviation of this portfolio if their
correlation is − 0.8?
Question 48 options:
4.22%
6.45%
10.68%
8.40%

ANSWER ALL QUESTIONS
Use the following information to answer questions 1 and 2.
A near long straight current carrying conductor lying on the y-axis
has 10 A current flowing
through it from the top to the bottom. Determine
Question 1.
The magnitude of the magnetic field produced by the conductor at a
distance 100 cm away from
the conductor.
A. 2.0 × 10−5?????
B. 4.0 × 10−7?????
C. 6.0 × 10−6?????
D. 9.0 × 10−6?????
E. 2.0 × 10−6?????
Question...

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