Question
In: Finance
You have been assigned to examine the following funds with their respective probabilities: Stock Fund X...
You have been assigned to examine the following funds with their respective probabilities:
Stock Fund X
Stock Fund Y
Scenario
Probability
Rate of Return (%)
Rate of Return (%)
Severe recession
0.05
-5
11.2
Mild recession
0.15
-1.6
3.3
Normal growth
0.55
7.7
0.5
Boom
0.25
16.3
-4.1
Calculate the standard deviation of a portfolio that invests 55% on stock fund X and 45% on stock fund Y.
Remember to state your answer as a percentage. For example, 99.99%.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You have been assigned to examine the following funds with their respective probabilities: Stock Fund X...
You have been assigned to examine the following funds with their
respective probabilities:
Stock Fund X
Stock Fund Y
Scenario
Probability
Rate of Return (%)
Rate of Return (%)
Severe recession
0.05
-5
11.2
Mild recession
0.15
-1.6
3.3
Normal growth
0.55
7.7
0.5
Boom
0.25
16.3
-4.1
Calculate the expected return of a portfolio that invests 55% on
stock fund X and 45% on stock fund Y.
Remember to state your answer as a percentage. For example,
99.99%.
You have been assigned to examine the following funds with their respective probabilities: Stock Fund X...
You have been assigned to examine the following funds with their
respective probabilities:
Stock Fund X
Stock Fund Y
Scenario
Probability
Rate of Return (%)
Rate of Return (%)
Severe recession
0.05
-5
11.2
Mild recession
0.15
-1.6
3.3
Normal growth
0.55
7.7
0.5
Boom
0.25
16.3
-4.1
What is the standard deviation of the stock fund X?
Remember to state your answer as a percentage. For example,
99.99%.
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a. Should you be long or short in the Midcap
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Long
Short
b. Assuming the Midcap 400 Index is at 649 and
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You discover the following situations:
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You have been assigned to examine the financial statements of Novak Company for the year ended...
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