Question
In: Finance
Toyota Corp.'s stock price has a variance of returns equal to 0.0335. Honda Corp.'s stock price...
Toyota Corp.'s stock price has a variance of returns equal to
0.0335. Honda Corp.'s stock price has a variance
of returns equal to 0.0455. The covariance between
Toyota and Honda is 0.0675. What is the standard
deviation of a portfolio consisting of 50% Toyota and 50%
Honda?
*Place your answer in decimal form
*please show how to get anwser
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Suppose Toyota Corp. and Honda Corp. are deciding whether to make mobile wifi a standard feature...
Suppose Toyota Corp. and Honda Corp. are deciding whether to
make mobile wifi a standard feature on next year’s economy-size car
models. If both firms make wifi standard, Toyota will earn $5
billion in profit and Honda will earn $5.2 billion in profit. If
neither adopts wifi as standard, then Toyota will earn $6 billion
in profit and Honda will earn $3.8 billion in profit. If Toyota
adopts the technology and Honda doesn’t, then Toyota will earn $4
billion in...
An object Car can be described by the manufacturer (Honda, Toyota and Nissan), its price, and...
An object Car can be described by the manufacturer (Honda,
Toyota and Nissan), its price, and its quantity. These attributes
are not accessible by other classes. The class contains a
parameterized constructor that sets the attributes using
mutator methods. The accessibility of the mutator
methods are local to the class. It also has accessor
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The variance of returns is 0.09 for Stock A and 0.04 for Stock B. The covariance...
The variance of returns is 0.09 for Stock A and 0.04 for Stock
B. The covariance between the returns of A and B is 0.006. The
correlation of returns between A and B is:
What is the variance of the returns on a portfolio comprised of $4,200 of Stock G...
What is the variance of the returns on a portfolio comprised of
$4,200 of Stock G and $5,300 of Stock H?
State of
Economy
Probability of
State of Economy
Rate of Return
if State Occurs
Stock G
Stock H
Boom
.18
.18
.08
Normal
.82
.14
.11
A. .000248
B. .000209
C. .000000
D. .001324
What is the variance of the returns on a portfolio comprised of $4,200 of Stock G...
What is the variance of the returns on a portfolio comprised of
$4,200 of Stock G and $5,300 of Stock H?
State of Economy
Probability of State of Economy
Rate of Return If State Occurs
Stock G, Stock H
Boom
0.18
0.18, 0.08
Normal
0.82
0.14, 0.11
Multiple Choice .000248 .001324 .000209 .000000 .000168
What is the variance of the returns on a portfolio comprised of $4,200 of Stock G...
What is the variance of the returns on a portfolio comprised of
$4,200 of Stock G and $5,300 of Stock H?
State of
Economy
Probability of
State of Economy
Rate of Return
if State Occurs
Stock G
Stock H
Boom
.18
.18
.08
Normal
.82
.14
.11
.001324
.000000
.000209
.000248
please show work
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strategy to take advantage of this information?
b. If you and many others pursued this strategy, predict what
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c. Suppose that Liquid Force’s stock price consistently falls by
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Value and Returns A stock has an expected dividend yield of 3.8% a price today of...
Value and Returns A stock has an expected dividend yield of 3.8%
a price today of $30 and an expected sale price in one year of $33.
The stock has a beta of 1.2 and the expected return on the market
is 10% while the risk free rate is 5%. This stock is _____________
by ________ basis points.
overvalued; 143
undervalued; 280
undervalued; 143
overvalued; 280
Consider a stock with a current value of $76 and a standard deviation of returns equal...
Consider a stock with a current value of $76 and a standard
deviation of returns equal to 30%. Suppose there is a call option
on this stock with a maturity of 6 months and a strike price of
$70. The risk-free rate is 3%.
What is the value of this option?
If the stock price increases by $1, what is the change in the
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Problem 01: Calculate individual stock average, standard deviation, variance, portfolio variance Given are the daily returns...
Problem 01: Calculate individual stock average, standard
deviation, variance, portfolio variance
Given are the daily returns for two stocks X and Y for five
business days in last week. If you have 1000 dollars to invest and
you are considering to invest 600 dollars in stock X and 400
dollars in stock Y. Calculate the following
A. average stock return for individual stocks
B. variance and standard deviations for the individual
stocks
C. calculate the covariance and correlation between the...
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