Question
In: Accounting
The following information indicates percentage returns for stocks L and M over a 6-year period: Year...
The following information indicates percentage returns for stocks L and M over a 6-year period:
|
Year |
Stock L Returns |
Stock M Returns |
|
1 |
14.02% |
20.19% |
|
2 |
14.59% |
18.23% |
|
3 |
16.99% |
16.41% |
|
4 |
17.29% |
14.41% |
|
5 |
17.5% |
12.43% |
|
6 |
19.27% |
10.41% |
In combining [L−M] in a single portfolio, stock M would receive 60% of capital funds.
Furthermore, the information below reflects percentage returns for assets F, G, and H over a 4-year period, with asset F being the base instrument:
|
Year |
Asset F Returns |
Asset G Returns |
Asset H Returns |
|
1 |
16.17% |
17.06% |
14.39% |
|
2 |
17.24% |
16.44% |
15.3% |
|
3 |
18.44% |
15.34% |
16.48% |
|
4 |
19.23% |
14.13% |
17.42% |
Using these assets, you have a choice of either combining [F−G] or [F−H] in a single portfolio, on an equally-weighted basis.
Required: Calculate the absolute percentage difference in the coefficient of variation (CV) between the stock portfolio [L−M] and the portfolio which outlines the optimal combination of assets.
Answer% Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places (for example: 28.31%).
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The following information indicates percentage returns for stocks L and M over a 6-year period: year...
The following information indicates percentage returns for
stocks L and M over a 6-year period:
year
stock L returns
stock M returns
1
14.79%
20.57%
2
14.3%
18.19%
3
16.47%
16.2%
4
17.86%
14.43%
5
17.6%
12.53%
6
19.39%
10.98%
In combining [L−M] in a single portfolio, stock M would receive
60% of capital funds. Furthermore, the information below reflects
percentage returns for assets F, G, and H over a 4-year period,
with asset F being the base instrument: Year...
The following information indicates percentage returns for stocks L and M over a 6-year period: Year...
The following information indicates percentage returns for
stocks L and M over a 6-year period:
Year
Stock L Returns
Stock M Returns
1
14.13%
20.87%
2
14.88%
18.83%
3
16.06%
16.49%
4
17.38%
14.46%
5
17.7%
12.51%
6
19.27%
10.04%
In combining [L−M] in a single portfolio,
stock M would receive 60% of capital funds.
Furthermore, the information below reflects percentage returns
for assets F, G, and H over a 4-year
period, with asset F being the base instrument:
Year...
The following information indicates percentage returns for stocks L and M over a 6-year period: Year...
The following information indicates percentage returns for
stocks L and M over a 6-year period:
Year
Stock L Returns
Stock M Returns
1
14.65%
20.28%
2
14.27%
18.83%
3
16.87%
16.47%
4
17.61%
14.61%
5
18%
12.37%
6
19.84%
10.64%
In combining [L−M] in a single portfolio,
stock M would receive 60% of capital funds.
Furthermore, the information below reflects percentage returns
for assets F, G, and H over a 4-year
period, with asset F being the base instrument:
Year...
The following information indicates percentage returns for stocks L and M over a 6-year period: Year...
The following information indicates percentage returns for
stocks L and M over a 6-year period:
Year
Stock L Returns
Stock M Returns
1
14.02%
20.19%
2
14.59%
18.23%
3
16.99%
16.41%
4
17.29%
14.41%
5
17.5%
12.43%
6
19.27%
10.41%
In combining [L−M] in a single portfolio,
stock M would receive 60% of capital funds.
Furthermore, the information below reflects percentage returns
for assets F, G, and H over a 4-year
period, with asset F being the base instrument:
Year...
he following information indicates percentage returns for stocks L and M over a 6-year period: Year...
he following information indicates percentage returns for stocks
L and M over a 6-year period:
Year
Stock L Returns
Stock M Returns
1
14.79%
20.57%
2
14.3%
18.19%
3
16.47%
16.2%
4
17.86%
14.43%
5
17.6%
12.53%
6
19.39%
10.98%
In combining [L−M] in a single portfolio,
stock M would receive 60% of capital funds.
Furthermore, the information below reflects percentage returns
for assets F, G, and H over a 4-year
period, with asset F being the base instrument:
Year...
(Expected return and risk) The following data represend returns for the common stocks over a one-year period.
(Expected return and risk) The following data represend returns for the common stocks over a one-year period. The mean (expected) return of Google is _______%. (Keep the sign and two decimal numbers.)
Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period:...
Suppose we have the following returns for large-company stocks
and Treasury bills over a six-year period:
Year. Large Company. US Treasury Bill
1. 3.99%. 6.65%
2. 14.50. 4.46
3 19.39 4.33
4 -14.29 7.34
5 -31.78 5.44
6 37.10 6.45
a. Calculate the arithmetic average returns for large-company
stocks and T-bills over this period.
b. Calculate the standard deviation of the returns for
large-company stocks and T-bills over this period.
c-1. Calculate the observed risk premium in each year...
Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period:...
Suppose we have the following returns for large-company stocks
and Treasury bills over a six-year period: Year Large Company US
Treasury Bill 1 3.66% 4.66% 2 14.44 2.33 3 19.03 4.12 4 –14.65 5.88
5 –32.14 4.90 6 37.27 6.33 a. Calculate the arithmetic average
returns for large-company stocks and T-bills over this period. (Do
not round intermediate calculations and enter your answers as a
percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the
standard deviation of the...
Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period:...
Suppose we have the following returns for large-company stocks
and Treasury bills over a six-year period:
Year
Large Company
US Treasury Bill
1
3.69%
4.75%
2
14.48
3.59
3
19.27
4.18
4
–14.41
5.91
5
–31.90
5.32
6
37.51
6.41
a.
Calculate the arithmetic average returns for large-company
stocks and T-bills over this period. (Do not round
intermediate calculations and enter your answers as a percent
rounded to 2 decimal places, e.g., 32.16.)
b.
Calculate the standard deviation of the...
Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period:...
Suppose we have the following returns for large-company stocks
and Treasury bills over a six-year period:
Year
Large Company
US Treasury Bill
1
3.66%
4.66%
2
14.44
2.33
3
19.03
4.12
4
–14.65
5.88
5
–32.14
4.90
6
37.27
6.33
a.
Calculate the arithmetic average returns for large-company
stocks and T-bills over this period. (Do not round
intermediate calculations and enter your answers as a percent
rounded to 2 decimal places, e.g., 32.16.)
b.
Calculate the standard deviation of the...
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