Question
In: Finance
Assume that you set up a portfolio composed of Stock A and Stock B. You invested...
Assume that you set up a portfolio composed of Stock A and Stock B. You invested 40% of your capital on Stock A whereas 60% of your capital on Stock B. During the last 3 years, your portfolio showed the following performance.
|
Stock A |
Stock B |
|
|
2016 |
0.1 |
-0.1 |
|
2017 |
0.2 |
0 |
|
2018 |
0.3 |
0.4 |
What are your average portfolio return and risk (standard deviation or variance) during last three years? (20 points)
Solutions
Expert Solution
Please upvote if the ans is helfpul.In case of doubt,do comment.Thanks.
jeff jeffy answered 2 years agoRelated Solutions
Assume that you set up a portfolio composed of Stock A and Stock B. You invested...
Assume that you set up a portfolio composed of Stock A and Stock
B. You invested 40% of your capital on Stock A whereas 60% of your
capital on Stock B. During the last 3 years, your portfolio showed
the following performance.
Stock A
Stock B
2016
0.1
-0.1
2017
0.2
0
2018
0.3
0.4
What are your average portfolio return and risk (standard
deviation or variance) during last three years? (20 points)
Assume that you have a portfolio (P) with $1,000 invested in Stock A and $3,000 in...
Assume that you have a portfolio (P) with $1,000
invested in Stock A and $3,000 in Stock B. You also have the
following information on both
stocks:
Stock A Stock B
________________________________________________________
Expected Return (A) 0.15 (B) 0.24
Standard Deviation (A) 0.16 (B) 0.20
The covariance between A and B is - .0256
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A. 15.04%
B. 13.50%
C. 14.32%
D. 12.68%
E. 14.61%
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the remainder in Stock C. The returns for Stock A, B, and C are
11.7%, 39.2%, and 14.3% respectively. What is the portfolio's
return?
Q2.
Calculate the portfolio beta based on the following
information:
Stock
Invested Amount
beta
A
$2475
0.7
B
$2159
0.3
C
$441
0.8
Q3. The risk-free rate is 2.1%, the market risk premium = (
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1- A portfolio is composed of two stocks, A and B. Stock A has a standard...
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standard deviation of return of 28%, while stock B has a standard
deviation of return of 22%. Stock A comprises 60% of the portfolio,
while stock B comprises 40% of the portfolio. If the variance of
return on the portfolio is .050, the correlation coefficient
between the returns on A and B is _________ . a) .190 b) .285 c)
.104 d ) .475
2-...
Q1：Assume that your portfolio has three stocks. You have $300,000 invested in stock A that is...
Q1：Assume that your portfolio has three stocks. You have
$300,000 invested in stock A that is returning 17%, $300, 000
invested in stock B that is returning 16%, and $400,000 invested in
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VAR Calculation A firm has a portfolio composed of stock A and B with normally distributed...
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A firm has a portfolio composed of stock A and B with normally
distributed returns. Stock A has an annual expected return of 15%
and annual volatility of 20%. The firm has a position of $100
million in stock A. Stock B has an annual expected return of 25%
and an annual volatility of 30% as well. The firm has a position of
$50 million in stock B. The correlation coefficient between the
returns of these two stocks...
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