Question

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.)

Answer #1

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 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 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:
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 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:
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:
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 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:
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. 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...

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