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In: Finance
The following returns have been estimated for Security T and Security S: Scenario Security T Security...
The following returns have been estimated for Security T and Security S:
| Scenario | Security T | Security S |
| 1 | 20% | 10% |
| 2 | 13% | -6% |
| 3 | 15% | 20% |
Each scenario is equally likely to occur, and you plan to invest 70% in Security T and 30% in Security S. What is the standard deviation of the rate of return of the portfolio? Round your answer to the nearest tenth of a percent.
A) 0.0%
B) 4.5%
C) 19.9%
D) 59.7%
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jeff jeffy answered 7 months agoRelated Solutions
The following returns have been estimated for Security T and Security S: Scenario Security T Security...
The following returns have been estimated for Security T and
Security S:
Scenario
Security T
Security S
1
20%
10%
2
13%
-6%
3
15%
20%
Each scenario is equally likely to occur, and you plan to invest
70% in Security T and 30% in Security S. What is the standard
deviation of the rate of return of the portfolio? Round your answer
to the nearest tenth of a percent.
A) 0.0%
B) 4.5%
C) 19.9%
D) 59.7%
The following returns have been estimated for Security T and Security S: Scenario Security T Security...
The following returns have been estimated for Security T and
Security S:
Scenario
Security T
Security S
1
20%
10%
2
13%
-6%
3
15%
20%
Each scenario is equally likely to occur, and you plan to invest
70% in Security T and 30% in Security S. What is the standard
deviation of the rate of return of the portfolio? Round your answer
to the nearest tenth of a percent.
A) 0.0%
B) 4.5%
C) 19.9%
D) 59.7%
The following probability distributions of returns for two stocks have been estimated: Probability Stock A Stock...
The following probability distributions of returns for two
stocks have been estimated:
Probability Stock A Stock B
0.3 12% 8%
0.4 8 4
0.3 6 3
What is the coefficient of variation for the stock that is less
risky (assuming you use the coefficient of variation to rank
riskiness).
0.66
3.62
5.16
0.28
0.19
The following probability distributions of returns for two stocks have been estimated: Probability; Stock A; Stock...
The following probability distributions of returns for two
stocks have been estimated:
Probability; Stock A; Stock B
0.3; 12%; 5%
0.4; 8; 4
0.3; 6; 3
What is the coefficient of variation for the stock that is less
risky (assuming you use the coefficient of variation to rank
riskiness).
3.62
0.28
0.66
5.16
0.19
The following equation has been estimated: stack s a t with hat on top =1028.10+19.3 hsize-1.90...
The following equation has been estimated: stack s a t with hat
on top =1028.10+19.3 hsize-1.90 hsize_squared-53.29 female-156.26
black+37.87 female*black (6.29) (3.83) (0.53) (4.29) (14.66)
(18.15) The variable sat is the combined SAT score, hsize is the
size of the students' high school graduating class in hundreds. The
variable female is a gender dummy variable equal to 1 for females
and 0 otherwise. Another variable black is a race dummy variable
equal to 1 for black and 0 otherwise. Robust...
Which are the three yield curve factors that have been shown to affect Treasury security returns...
Which are the three yield curve factors that have been shown to
affect Treasury security returns and which has the strongest
impact?
A) Slope, Curve and Weight; with slope being the most
impactful
B) Level Slope and Curve; with level being the most
impactful
C) Level Slope and Convexity; with convexity being the most
impactful
D) Spot, forward and par; with spot being the most impactful
Suppose the security I and security J have the following historical returns: Year rI rJ 2015...
Suppose the security I and security J have the following
historical returns:
Year
rI
rJ
2015
20%
40%
2016
29%
36%
2017
-12%
-25%
What is the standard deviation of the return on portfolio P?
(Use n-1 for the denominator.)
9.09%
17.39%
25.82%
28.75%
29.02%
We have two kind of figures such as estimated returns and required returns. There are classification...
We have two kind of figures such as estimated returns and
required returns. There are classification for undervalued and
overvalued assets. Please explain these concept and under these
conditions what is the investors behavior.
The index model has been estimated for the returns of stocks A and B, denoted by...
The index model has been estimated for the returns of stocks A
and B, denoted by R_A and R_B, on the return on the market denoted
by R_M, with the following results:
R_A = 0.01 + 0.8R_M + e_A.
R_B = 0.02 + 1.2R_M + e_B.
The standard deviation of market returns is 0.2; the idiosyncratic
risk (standard deviation of e_A) of stock A is 0.10; and that for
stock B is 0.20.
The standard deviation for stock A is
Consider the following scenarios for Space Corp.’s likely equity returns per year: Scenario Probability &
Consider the following scenarios for Space Corp.’s likely
equity returns per year:
Scenario Probability Expected
Returns
Really Bad
15% (5%)
Bad
20% 2.5%
Likely
30% 7.5%
Better
20% 12.5%
Really Good
15% 20%
What is the expected return for this
security per year?
What is the standard deviation of
expected returns?
What are the expected returns with a
90% confident interval, if this follows the normal
distribution?
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