If one calculated a standard deviation of 18.38% for a security with an expected return of...

If one calculated a standard deviation of 18.38% for a security with an expected return of 9.19%, how would one explain the importance and message of these statistical moments to an political science major? What does skew and kurtosis add, if anything, to the distribution discussion?

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jeff jeffy answered 2 hours ago

Security X has expected return of 14% and standard deviation of 22%. Security Y has expected...

Security X has expected return of 14% and standard deviation of 22%. Security Y has expected return of 16% and standard deviation of 28%. The two securities have a correlation coefficient of -1. You wish to combine the two securities in order to construct a portfolio that has a standard deviation of zero. Which percentage of your capital should you invest in security X? (Enter your answer as a percent)

10. Security A has an expected rate of return of 10% and a standard deviation of...

10. Security A has an expected rate of return of 10% and a standard deviation of 16%. Security B has an expected rate of return of 8% and a standard deviation of 12%. Let A and B are perfectly negatively correlated. The expected return of a risk-free portfolio formed with A and B is Select one: a. 10% b. 9.47% c. 7.86% d. 8.86%

A portfolio consists of 60% of Security A (expected return of 0.10 and standard deviation of...

A portfolio consists of 60% of Security A (expected return of 0.10 and standard deviation of 0.03) and 40% of Security B (expected return of 0.20 and standard deviation of 0.05) and the correlation coefficient between A and B is -0.0012. a) Calculate the expected return and standard deviation of the portfolio. b) Calculate the standard deviation of the portfolio if there was no diversification benefit.

Assume a security has an expected return of .12 and a standard deviation of 0.08 a)...

Assume a security has an expected return of .12 and a standard deviation of 0.08 a) What is the expected return two standard deviation above the mean and what is the probability of a return greater that this amount? B) What is the probability of a return greater than 0.04 for a given year.

The expected return and standard deviation of return for four securities are listed below. Which security...

The expected return and standard deviation of return for four securities are listed below. Which security is the least risky? A B C D Expected Return 15% 12% 18% 8% Standard Deviation 14% 14% 18% 10% A. Security C. B. Security A. C. Security B. D. Security D.

You are to examine the expected return and risk (standard deviation) of a two security portfolio....

You are to examine the expected return and risk (standard deviation) of a two security portfolio. Your portfolio consists of the stock of Wolf Creek Company (WCC) and the stock of RHC Industrial. The two companies’ stocks have the following stock prices over the past 10 years, and they do not pay dividends. WCC ($) RHC ($) 2006 45 18 2007 49 19 2008 44 21 2009 58 25 2010 55 27 2011 46 25 2012 68 ...

You are given the following information on two securities. Security Expected Return Standard Deviation of Returns...

You are given the following information on two securities. Security Expected Return Standard Deviation of Returns A 10.0% 14.0% B 16.0% 12.0% The correlation between the returns on the two securities is +0.6. The standard deviation of returns of a portfolio earning an expected return of 14.0 percent is closest to: Group of answer choices A 11.4%. B 9.3%. C 27.1%. D 12.7%.

Calculate the expected return and standard deviation of the portfolio.

A portfolio consists of two stocks: Stock Expected Return Standard Deviation Weight Stock 1 10% 15% 0.30 Stock 2 13% 20% ??? The correlation between the two stocks’ return is 0.50 Calculate the expected return and standard deviation of the portfolio. Expected Return: Standard Deviation: (i) Briefly explain, in general, when there would be “benefits of diversification” (for any portfolio of two securities). (ii) Describe whether the above portfolio would...

Stock X has an expected return of 11% and the standard deviation of the expected return...

Stock X has an expected return of 11% and the standard deviation of the expected return is 12%. Stock Z has an expected return of 9% and the standard deviation of the expected return is 18%. The correlation between the returns of the two stocks is +0.2. These are the only two stocks in a hypothetical world. A.What is the expected return and the standard deviation of a portfolio consisting of 90% Stock X and 10% Stock Z? Will any...

The expected return on Tobiko is 13% and its standard deviation is 21.8%. The expected return...

The expected return on Tobiko is 13% and its standard deviation is 21.8%. The expected return on Chemical Industries is 10% and its standard deviation is 27.7%. a. Suppose the correlation coefficient for the two stocks' returns is 0.29. What are the expected return and standard deviation of a portfolio with 56% invested in Tobiko and the rest in Chemical Industries? (Round your answers to 2 decimal places.) Portfolio's expected return % Portfolio's standard deviation % b. If the...

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