Question
In: Finance
Based on the information given below, calculate (a) the portfolio’s return in the last 12 months...
Based on the information given below, calculate (a) the portfolio’s return in the last 12 months in the USD, (b) its return in the AUD, and (c) the standard deviation of the portfolio return. Provide all the workings (use up to 3 decimal places). Your stock portfolio consists of two American companies; Alphabet and GM. You are living in Australia and those shares are purchased in the USD. During the last 12 months, Alphabet’s stock went up by 20%, while GM went up by 3%. During the same period, the USD went down by 2% against the AUD. Assume that you have invested 40% of your money to Alphabet and allocated 60% of your money to GM. Furthermore, assume that the standard deviations of stock returns are 7% for Alphabet and 4% for GM, and the correlation coefficient between the two stock is 0.2
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Based on the information given below, calculate (a) the portfolio’s return in the last 12 months...
Based on the information given below, calculate (a) the
portfolio’s return in the last 12 months in the USD, (b) its return
in the AUD, and (c) the standard deviation of the portfolio return.
Provide all the workings (use up to 3 decimal places).
Your stock portfolio consists of two American companies;
Alphabet and GM. You are living in Australia and those shares are
purchased in the USD. During the last 12 months, Alphabet’s stock
went up by 20%, while...
Based on the investment portfolio information shown below, what is the portfolio’s expected return? Stock Investment...
Based on the investment portfolio information shown below, what
is the portfolio’s expected return?
Stock
Investment
Return
X
$250,000
13.4%
Y
$400,000
10.9%
Z
$350,000
11.7
Calculate the expected return based on the information in the table below State of economy Probability...
Calculate the expected return based on the information in the
table below
State of economy
Probability of state of economy
Rate of return if state occurs
Recession
.30
-.07
Normal
.60
.13
Boom
.10
.23
Based on the investment portfolio information shown below, what is the portfolio’s beta? Stock Investment Beta...
Based on the investment portfolio information shown below, what
is the portfolio’s beta?
Stock
Investment
Beta
D
$465,000
0.7
E
$685,000
0.5
F
$520,000
1.2
Calculate the Net Price based on the information given below. (Round answer to 2 decimal places.)...
Calculate the Net Price based on the information given below.
(Round answer to 2 decimal places.)
Item
List Price
Chain Discount
Net Price
Sofa
$1,250
10/5/5/4
$???
Given the following price and dividend information, calculate the arithmetic average return, the geometric average return,...
Given the following price and dividend information, calculate
the arithmetic average return, the geometric average return, the
sample variance and the sample standard deviation for the returns,
holding period return, the $1 invested equivalent, the probability
of losing money, the upper bound to the 95th confidence interval,
the lower bound to the 99th confidence interval, the lower bound to
the 68th confidence interval. (Enter percentages as decimals and
round to 4 decimals)
Year
Price
Dividend
0
50.72
1
43.54...
Based on the information given in the table, what is this project's internal rate of return?...
Based on the information given in the table, what is this
project's internal rate of return?
Time
Cash-Flow
0
($30)
1
$5
2
$7
3
$2
4
$6
5
$6
6
$12
WACC = 5.25%
6.35%
4.71%
6.30%
6.25%
5.25%
Ruby Company follows activity-based budgeting. From the information given below, calculate the total activity cost of...
Ruby Company follows activity-based budgeting. From the
information given below, calculate the total activity cost of the
company. Activity description Activity driver Cost per unit of
driver Amount of driver Processing mail Number of clients $120 $75
Paying bills Number of bills $ 2.5 $10,000 Investigating Number of
new hires $110 $75 Writing reports Number of clients $150 $75 a.
$52,500 b. $52,800 c. $53,500 d. $53,200
Covariance and Correlation Based on the following information, calculate the expected return and standard deviation of...
Covariance and Correlation Based on the following information,
calculate the expected return and standard deviation of each of the
following stocks. Assume each state of the economy is equally
likely to happen. What are the covariance and correlation between
the returns of the two stocks?
STATE OF ECONOMY
RETURN ON STOCK A
RETURN ON STOCK B
Bear
Normal
Bull
-.032
.124
.193
-.103
-.025
.469
Covariance and Correlation Based on the following information, calculate the expected return and standard deviation of...
Covariance and Correlation Based on the following information,
calculate the expected return and standard deviation of each of the
following stocks. Assume each state of the economy is equally
likely to happen. What are the covariance and correlation between
the returns of the two stocks?
STATE OF ECONOMY
RETURN ON STOCK A
RETURN ON STOCK B
Bear
Normal
Bull
-.032
.124
.193
-.103
-.025
.469
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