A stock has a beta of 1.3 and an expected return of 12.8
percent. A risk-free asset currently earns 4.3 percent.
a. What is the expected return on a portfolio that
is equally invested in the two assets? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
Expected return
%
b. If a portfolio of the two assets has a beta of
.90, what are the portfolio weights? (Do not...
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...
Stock 1 has a expected return of 12% and a standard deviation of
15%. Stock 2 has a expected return of 10% and a standard deviation
of 12%. Correlation between the two stocks is 0.3. What is the
investment proportion of stock 1 in the minimum variance
portfolio?
Stock A has an expected return of 16% and a standard deviation
of 30%. Stock B has an expected return of 14% and a standard
deviation of 13%. The risk-free rate is 4.7% and the correlation
between Stock A and Stock B is 0.9. Build the optimal risky
portfolio of Stock A and Stock B. What is the expected return on
this portfolio?
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 15% and a standard deviation
of 26%. Stock B has an expected return of 15% and a standard
deviation of 12%. The risk-free rate is 4% 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? Round answer to 4 decimal places
Stock A has an expected return of 15% and a standard deviation
of 26%. Stock B has an expected return of 15% and a standard
deviation of 12%. The risk-free rate is 4% 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?
Stock A has an expected return of 20% and a standard deviation
of 28%. Stock B has an expected return of 14% and a standard
deviation of 13%. The risk-free rate is 6.6% and the correlation
between Stock A and Stock B is 0.2. Build the optimal risky
portfolio of Stock A and Stock B. What is the expected return on
this portfolio?
Stock A has an expected return of 18% and a standard deviation
of 33%. Stock B has an expected return of 13% and a standard
deviation of 17%. The risk-free rate is 3.6% and the correlation
between Stock A and Stock B is 0.2. Build the optimal risky
portfolio of Stock A and Stock B. What is the standard deviation of
this portfolio?
Stock A has an expected return of 17% and a standard deviation
of 29%. Stock B has an expected return of 14% and a standard
deviation of 18%. The risk-free rate is 2.8% and the correlation
between Stock A and Stock B is 0.3. Build the optimal risky
portfolio of Stock A and Stock B. What is the expected return on
this portfolio?