Question
In: Finance
Use the following scenario analysis for stocks X and Y to answer the questions. Bear Normal...
Use the following scenario analysis for stocks X and Y to answer the questions.
| Bear | Normal | Bull | |
| Market | Market | Market | |
| Probability | 35.00% | 55.00% | 10.00% |
| Stock X | -28.00% | 9.00% | 30.00% |
| Stock Y | -16.00% | 15.00% | 50.00% |
Assume you have a $200,000 portfolio and you invest $80,000 in stock X and the remainder in stock Y. If the risk–free rate of return is 3.75%, and we assume that the standard deviation of the excess returns on the portfolio is 15%, what is the Sharpe Ratio for this portfolio formed from stocks X and Y? Enter your answer rounded to two decimal places. For example, if your answer is 123.45% or 1.2345 then enter as 1.23 in the answer box.
Use the following scenario analysis for stocks X and Y to answer the questions.
| Bear | Normal | Bull | |
| Market | Market | Market | |
| Probability | 35.00% | 55.00% | 10.00% |
| Stock X | -28.00% | 9.00% | 30.00% |
| Stock Y | -16.00% | 15.00% | 50.00% |
Assume you have a $200,000 portfolio and you invest $80,000 in stock X and the remainder in stock Y. What is the expected return for this portfolio? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Use the following scenario analysis for stocks X and Y to answer the questions. Bear Normal...
Use the following scenario analysis for stocks X and Y to answer
the questions.
Bear
Normal
Bull
Market
Market
Market
Probability
20.00%
45.00%
35.00%
Stock X
-13.00%
11.00%
28.00%
Stock Y
-26.00%
16.00%
46.00%
Assume you have a $200,000 portfolio and you invest $75,000 in
stock X and the remainder in stock Y. What is the expected return
for this portfolio?
Consider the following scenario analysis: Rate of Return Scenario Recession Normal Boom Probability Stocks Bonds .2...
Consider the following scenario analysis:
Rate of Return
Scenario Recession Normal Boom
Probability Stocks Bonds .2 -10% +14% .6 +15 +8
.2 +25 +3
Calculate the expected rate of return of stocks and bonds
Calculate the standard deviation of each investment
If you own 60% stocks and 40% bonds, what are your expected
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If you own 60% stocks and 40% bonds, what is your standard
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1. Use the following data to answer the questions below. Show your work (x-mx^2 x y...
1. Use the following data to answer the questions below. Show
your work
(x-mx^2
x
y
(y-my)^2
(x-m)(y-m)
9
8
9
16
12
9
2
5
0
0
16
1
5
0
0
9
2
8
9
-9
16
9
2
9
-12
9
8
1
16
-12
Sum 68
5
5
Sum 50
Sum -21
x
y
8
9
2
5
1
5
2
8
9
2
8
1
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the following questions, showing all work. (1) Derive an expression
showing the overall effect of an increase in py on the quantity of
y consumed, holding constant px and income (I). (2) Now, show how
that overall effect in (1) can be decomposed into a separate
substitution effect and income effect. Show these effects
explicitly. (3) Now, do the same for x: derive an expression
showing the overall effect...
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Read carefully the following case/scenario and answer the
questions given at the end.
A manufacturing company, involved in the business of food
processing, faces a technical problem
at one of their major plants. Recently they faced a technical issue
which resulted in loss of
production and was fixed by engaging their mechanical staff. Now
this technical problem can result
in even bigger loss of production and if it gains attention of
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Directions: Use the Crosstabs option in the Descriptives menu to answer the questions based on the following scenario.
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Rosa and Dirk produce basketballs and footballs. Rosa can produce
six basketballs per hour or two footballs per hour. Dirk can
produce three basketballs per hour or four footballs per hour.
Based on the scenario, which of the following is true?
1. Rosa has both an absolute and a comparative advantage in
basketball production.
2. Rosa has neither an absolute nor a comparative advantage in
football production.
3. Dirk has...
Use the following information regarding a variable (Y) and a variable (X) to answer the next...
Use the following information regarding a variable (Y) and a
variable (X) to answer the next 7 questions. n = 8 ∑ x = 56 ∑ y =
296 ∑ x 2 = 428 ∑ y 2 = 11,920 ∑ xy = 2,257 The sample covariance
equals -9.17 12.12 9.17 26.43 Refer to above data. The sample
correlation coefficient equals: a. .991 b. 1.67 c. .85 d. -0.94
Refer to above data.
The sample correlation coefficient equals:
a.
.991
b....
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