Question

The historical returns on a balanced portfolio have had an average return of 14% and a...

The historical returns on a balanced portfolio have had an average return of 14% and a standard deviation of 16%. Assume that returns on this portfolio follow a normal distribution. [You may find it useful to reference the z table.] a. What percentage of returns were greater than 30%? (Round your answer to 2 decimal places.) b. What percentage of returns were below −18%? (Round your answer to 2 decimal places.)

Homework Answers

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
The historical returns on a balanced portfolio have had an average return of 8% and a...
The historical returns on a balanced portfolio have had an average return of 8% and a standard deviation of 15%. Assume that returns on this portfolio follow a normal distribution. [You may find it useful to reference the z table.] a. What percentage of returns were greater than 53%? (Round your answer to 2 decimal places.) b. What percentage of returns were below −7%? (Round your answer to 2 decimal places.)
The historical returns on a balanced portfolio have had an average return of 9% and a...
The historical returns on a balanced portfolio have had an average return of 9% and a standard deviation of 11%. Assume that returns on this portfolio follow a normal distribution. [You may find it useful to reference the z table.] a. What percentage of returns were greater than 20%?(Round your answer to 2 decimal places.) b. What percentage of returns were below −13%? (Round your answer to 2 decimal places.)
Problem 6-14 Historical Returns: Expected and Required Rates of Return You have observed the following returns...
Problem 6-14 Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y Market 2012 15% 12% 12% 2013 18 8 9 2014 -14 -3 -14 2015 4 1 1 2016 20 12 18 Assume that the risk-free rate is 3% and the market risk premium is 7%. Do not round intermediate calculations. What is the beta of Stock X? Round your answer to two decimal places. What is the...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time:...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y Market 2012 16% 12% 14% 2013 18 6 8 2014 -16 -4 -14 2015 5 2 3 2016 21 11 16 Assume that the risk-free rate is 6% and the market risk premium is 6%. Do not round intermediate calculations. What is the beta of Stock X? Round your answer to two decimal places. What is the beta of...
Problem 2-14 Historical Returns: Expected and Required Rates of Return You have observed the following returns...
Problem 2-14 Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y Market 2011 16% 12% 13% 2012 19 7 10 2013 -15 -2 -14 2014 4 1 1 2015 24 9 17 Assume that the risk-free rate is 4% and the market risk premium is 7%. Do not round intermediate calculations. What is the beta of Stock X? Round your answer to two decimal places.    What is...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time:...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y Market 2009 16% 14% 13% 2010 19 6 9 2011 -15 -2 -13 2012 2 1 1 2013 23 11 18 Assume that the risk-free rate is 3% and the market risk premium is 6%. Do not round intermediate calculations. What is the beta of Stock X? Round your answer to two decimal places. What is the beta of...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time:...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y Market 2012 16% 14% 14% 2013 21 7 11 2014 -14 -3 -10 2015 5 2 1 2016 21 9 17 Assume that the risk-free rate is 3% and the market risk premium is 6%. Do not round intermediate calculations. What is the beta of Stock X? Round your answer to two decimal places. What is the beta of...
eBook Problem 6-14 Historical Returns: Expected and Required Rates of Return You have observed the following...
eBook Problem 6-14 Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y Market 2012 14% 11% 11% 2013 17 7 11 2014 -13 -2 -11 2015 4 2 1 2016 21 8 15 Assume that the risk-free rate is 3% and the market risk premium is 6%. Do not round intermediate calculations. What is the beta of Stock X? Round your answer to two decimal places. What is...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time:...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y Market 2009 14% 15% 13% 2010 20 7 9 2011 -15 -8 -12 2012 4 2 2 2013 24 13 18 Assume that the risk-free rate is 4% and the market risk premium is 6%. Do not round intermediate calculations. What is the beta of Stock X? Round your answer to two decimal places. What is the beta of...
The average rent in a city is $1,410 per month with a standard deviation of $290....
The average rent in a city is $1,410 per month with a standard deviation of $290. Assume rent follows the normal distribution. [You may find it useful to reference the z table.] a. What percentage of rents are between $830 and $1,990? (Round your answer to the nearest whole percent.) b. What percentage of rents are less than $830? (Round your answer to 1 decimal place.) c. What percentage of rents are greater than $2,280? (Round your answer to 1...