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In: Finance
What is the Standard deviation ? Consider two stocks, Stock D, with an expected return of...
What is the Standard deviation ? Consider two stocks, Stock D, with an expected return of 13 percent and a standard deviation of 31 percent, and Stock I, an international company, with an expected return of 16 percent and a standard deviation of 42 percent. The correlation between the two stocks is –0.10. What are the expected return and standard deviation of the minimum variance portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Solutions
jeff jeffy answered 5 months agoRelated Solutions
Consider two stocks, Stock D, with an expected return of 20 percent and a standard deviation...
Consider two stocks, Stock D, with an expected return of 20
percent and a standard deviation of 35 percent, and Stock I, an
international company, with an expected return of 8 percent and a
standard deviation of 23 percent. The correlation between the two
stocks is −.21. What are the expected return and standard deviation
of the minimum variance portfolio? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 2 decimal places.)
Consider two stocks, Stock D, with an expected return of 17 percent and a standard deviation...
Consider two stocks, Stock D, with an expected return of 17
percent and a standard deviation of 32 percent, and Stock I, an
international company, with an expected return of 10 percent and a
standard deviation of 20 percent. The correlation between the two
stocks is −.18. What are the expected return and standard deviation
of the minimum variance portfolio? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 2 decimal places.
Expected return
28.95
%...
Consider two stocks, Stock D, with an expected return of 19 percent and a standard deviation...
Consider two stocks, Stock D, with an expected return of 19
percent and a standard deviation of 34 percent, and Stock I, an
international company, with an expected return of 7 percent and a
standard deviation of 22 percent. The correlation between the two
stocks is −.20. What are the expected return and standard deviation
of the minimum variance portfolio? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 2 decimal places.)
Expected Return:________%
Standard Deviation:_________%
Consider two stocks, Stock D, with an expected return of 16 percent and a standard deviation of 31 percent, and Stock I
Consider two stocks, Stock D, with an expected return of 16
percent and a standard deviation of 31 percent, and Stock I, an
international company, with an expected return of 9 percent and a
standard deviation of 19 percent. The correlation between the two
stocks is −.17. What are the expected return and standard deviation
of the minimum variance portfolio? (Do not round intermediate
calculations. Enter your answer as a percent rounded to 2 decimal
places.)
1. Consider two stocks, Stock D, with an expected return of 13 percent and a standard...
1. Consider two stocks, Stock D, with an expected return of 13
percent and a standard deviation of 26 percent, and Stock I, an
international company, with an expected return of 16 percent and a
standard deviation of 43 percent. The correlation between the two
stocks is -0.5. What is the weight of stock D in the minimum
variance portfolio? (Do not round intermediate
calculations. Round your answers to 4 decimal places.)
2. Consider two stocks, Stock D, with an...
1. Consider two stocks, Stock D, with an expected return of 13 percent and a standard...
1. Consider two stocks, Stock D, with an expected return of 13
percent and a standard deviation of 33 percent, and Stock I, an
international company, with an expected return of 16 percent and a
standard deviation of 40 percent. The correlation between the two
stocks is 0.2. What is the weight of stock D in the minimum
variance portfolio? (Do not round intermediate
calculations. Round your answers to 4 decimal places.)
2. Consider two stocks, Stock D, with an...
RISK AND RETURN – (A) Consider the expected return and standard deviation of these four stocks...
RISK AND RETURN –
(A) Consider the expected return and standard deviation
of these four stocks (chart below). If investors are buying only
one stock, which one of these stocks would no investor buy?
Why? (PLEASE INCLUDE FORMULAS USED TO SOLVE PROBLEM FOR
EXCEL).
STOCK
EXPECTED RETURN
STANDARD DEVIATION
A
6%
1%
B
7%
1.5%
C
7%
2%
D
8%
2%
ADDING AN ASSET TO A PORTFOLIO -
(B) Your current portfolio's cash returns over the past
three years look...
What are the expected return and standard deviation of stock A and stock B?
Consider the following information:
State Probability A
B
Boom 0.6
20% -5%
Bust 0.4
-10% 10%What are the expected return and standard deviation of stock A
and stock B?If you invest 50% of your money in stock A and 50% of your
money in stock B, what are the expected return and standard
deviation for the portfolio as a whole (considering both states of
the economy)?Use the results...
The following are estimates for two stocks. Stock Expected Return Beta Firm-Specific Standard Deviation A 10...
The following are estimates for two stocks.
Stock
Expected Return
Beta
Firm-Specific Standard Deviation
A
10
%
1.00
35
%
B
16
1.50
44
The market index has a standard deviation of 21% and the risk-free
(T-Bills are risk free) rate is 12%.
a. What are the standard deviations of stocks
A and B? (Do not round intermediate
calculations. Round your answers to 2 decimal
places.)
b. Suppose that we were to construct a portfolio
with proportions:
Stock A
0.25...
The following are estimates for two stocks. Stock Expected Return Beta Firm-Specific Standard Deviation A 8...
The following are estimates for two stocks. Stock Expected
Return Beta Firm-Specific Standard Deviation A 8 % 1.00 28 % B 16
1.60 40 The market index has a standard deviation of 25% and the
risk-free rate is 9%.
a. What are the standard deviations of stocks A and B? (Do not
round intermediate calculations. Round your answers to 2 decimal
places.)
b. Suppose that we were to construct a portfolio with
proportions:
Stock A 0.25 Stock B 0.50 T-bills...
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