Question

In: Finance

DW Co. stock has an annual return mean and standard deviation of 8 percent and 31...

DW Co. stock has an annual return mean and standard deviation of 8 percent and 31 percent, respectively. What is the smallest expected loss in the coming year with a probability of 16 percent? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round the z-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places)

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

I HAVE NOT USED EXCEL. JUST WRITTEN IN EXCEL


Related Solutions

Woodpecker, Inc., stock has an annual return mean and standard deviation of 11.8 percent and 40...
Woodpecker, Inc., stock has an annual return mean and standard deviation of 11.8 percent and 40 percent, respectively. What is the smallest expected loss in the coming month with a probability of 5 percent?
Tyler Trucks stock has an annual return mean and standard deviation of 14.5 percent and 48...
Tyler Trucks stock has an annual return mean and standard deviation of 14.5 percent and 48 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 12.4 percent and 48 percent, respectively. Your portfolio allocates equal funds to Tyler Trucks stock and Michael Moped Manufacturing stock. The return correlation between Tyler Trucks and Michael Moped Manufacturing is –0.5. What is the smallest expected loss for your portfolio in the coming month with a probability of...
Tyler Trucks stock has an annual return mean and standard deviation of 13 percent and 36...
Tyler Trucks stock has an annual return mean and standard deviation of 13 percent and 36 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 11 percent and 54 percent, respectively. Your portfolio allocates equal funds to Tyler Trucks stock and Michael Moped Manufacturing stock. The return correlation between Tyler Trucks and Michael Moped Manufacturing is .5. What is the smallest expected loss for your portfolio in the coming month with a probability of...
Tyler Trucks stock has an annual return mean and standard deviation of 15 percent and 38...
Tyler Trucks stock has an annual return mean and standard deviation of 15 percent and 38 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 11.4 percent and 56 percent, respectively. Your portfolio allocates equal funds to Tyler Trucks stock and Michael Moped Manufacturing stock. The return correlation between Tyler Trucks and Michael Moped Manufacturing is 0.5. What is the smallest expected loss for your portfolio in the coming month with a probability of...
4 a) Tyler Trucks stock has an annual return mean and standard deviation of 10 percent...
4 a) Tyler Trucks stock has an annual return mean and standard deviation of 10 percent and 22 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 16 percent and 32 percent, respectively. Your portfolio allocates equal funds to Tyler Trucks stock and Michael Moped Manufacturing stock. The return correlation between Tyler Trucks and Michael Moped Manufacturing is 0.5. What is the smallest percentageexpected loss for your portfolio in the coming month with a...
a. A stock has an annual return of 14 percent and a standard deviation of 62...
a. A stock has an annual return of 14 percent and a standard deviation of 62 percent. What is the smallest expected loss over the next year with a probability of 1 percent? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round the z-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places.) b. Does this number make sense? Yes No
a. A stock has an annual return of 11 percent and a standard deviation of 44...
a. A stock has an annual return of 11 percent and a standard deviation of 44 percent. What is the smallest expected gain over the next year with a probability of 1 percent? (Do not round intermediate calculations. Round the z-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places.) b. Does this number make sense? Yes No
Stock A has an expected return of 20 percent and a standard deviation of 38 percent....
Stock A has an expected return of 20 percent and a standard deviation of 38 percent. Stock B has an expected return of 26 percent and a standard deviation of 42 percent. Calculate the expected return and standard deviations for portfolios with the 6 different weights shown below assuming a correlation coefficient of 0.28 between the returns of stock A and B.                                     WA      WB                                     1.00     0.00                                     0.80     0.20                                     0.60     0.40                                     0.40     0.60                                     0.20     0.80...
Stock A has an expected annual return of 24% and a return standard deviation of 28%....
Stock A has an expected annual return of 24% and a return standard deviation of 28%. Stock B has an expected return 20% and a return standard deviation of 32%. If you are a risk averse investor, which of the following is true? A. You would never include Stock B in your portfolio, as it offers a lower return and a higher risk. B. Under certain conditions you would put all your money in Stock B. C. You would never...
Stock A has an expected return of 16% and a standard deviation of 31%. Stock B...
Stock A has an expected return of 16% and a standard deviation of 31%. Stock B has an expected return of 15% and a standard deviation of 14%. The risk-free rate is 3.2% and the correlation between Stock A and Stock B is 0.5. Build the optimal risky portfolio of Stock A and Stock B. What is the standard deviation of this portfolio?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT