Question
In: Finance
Consider the following 2 stocks: Closing Prices Stock A Stock B Year 1 33.75 112.09 Year...
Consider the following 2 stocks:
|
Closing Prices |
||
|
Stock A |
Stock B |
|
|
Year 1 |
33.75 |
112.09 |
|
Year 2 |
31.69 |
115.74 |
|
Year 3 |
29.17 |
115.89 |
|
Year 4 |
25.64 |
120.75 |
|
Year 5 |
27.97 |
125.12 |
|
Year 6 |
30.36 |
127.46 |
|
Year 7 |
32.74 |
110.49 |
|
Year 8 |
35.09 |
111.26 |
|
Year 9 |
31.89 |
106.99 |
|
Year 10 |
33.56 |
105.17 |
|
Year 11 |
30.12 |
108.25 |
- If correlation between the returns was -.301, calculate the covariance of returns
- Consider the following portfolio: 65% is invested in stock A and 35% invested in stock: Calculate portfolio standard deviation
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jeff jeffy answered 2 years agoRelated Solutions
Consider the following 2 stocks: Closing Prices Stock A Stock B Year 1 33.75 112.09 Year...
Consider the following 2 stocks:
Closing Prices
Stock A
Stock B
Year 1
33.75
112.09
Year 2
31.69
115.74
Year 3
29.17
115.89
Year 4
25.64
120.75
Year 5
27.97
125.12
Year 6
30.36
127.46
Year 7
32.74
110.49
Year 8
35.09
111.26
Year 9
31.89
106.99
Year 10
33.56
105.17
Year 11
30.12
108.25
Consider the following portfolio: 65% is invested in stock A
and 35% invested in stock: Calculate portfolio standard
deviation
Two stocks has the following year-end stock prices and dividends: Stock 1 Stock 2 Year Price...
Two stocks has the following year-end stock prices and
dividends:
Stock 1
Stock 2
Year
Price
Dividend
Price
Dividend
1
$70
$150
2
$75
$1
$163
$2
3
$74
$1
$156
$2
4
$80
$2
$173
$1
Which stock has a higher annual average capital gain yield over
the four years? Which stock has a higher average dividend yield?If
T-bill rate is 2.0 percent, which stock has a higher average
nominal risk premium based on the annual average total return?What...
Stock prices: Following are the closing prices of a particular stock for each trading day in...
Stock prices: Following are the closing prices
of a particular stock for each trading day in May and June of a
recent year.
May
884.74
900.68
900.62
886.25
820.43
875.04
877.00
871.98
879.81
890.22
879.73
864.64
859.70
859.10
867.63
880.37
877.07
873.65
866.20
869.79
829.61
June
906.97
908.53
909.18
903.87
915.89
887.10
877.53
880.23
871.48
873.63
857.23
861.55
845.72
871.22
870.76
868.31
881.27
873.32
882.79
(a) Find the mean and median price in May. Round the answers to
at least...
Stocks A and B have the following returns: Stock A Stock B 1 0.08 0.06 2...
Stocks A and B have the following returns:
Stock A
Stock B
1
0.08
0.06
2
0.05
0.01
3
0.12
0.06
4
−0.04
0.03
5
0.08
−0.02
a. What are the expected returns of the two stocks?
b. What are the standard deviations of the returns of the two
stocks?
c. If their correlation is0.45, what is the expected return and
standard deviation of a portfolio of 62%stock A and 38%stock
B?
Stocks A and B have the following returns: Stock A Stock B 1 0.11 0.06 2...
Stocks A and B have the following returns:
Stock A
Stock B
1
0.11
0.06
2
0.07
0.04
3
0.13
0.03
4
−0.01
0.02
5
0.08
−0.03
(Round to three decimal places.)
a. What are the expected returns of the two stocks?
b. What are the standard deviations of the returns of the two
stocks?
c. If their correlation is 0.45, what is the expected return
and standard deviation of a portfolio of 70%
stock A and 30% stock B?...
Stocks A and B have the following returns: Stock A Stock B 1 0.110.11 0.050.05 2...
Stocks A and B have the following returns:
Stock A
Stock B
1
0.110.11
0.050.05
2
0.070.07
0.030.03
3
0.140.14
0.030.03
4
negative 0.02−0.02
0.010.01
5
0.080.08
negative 0.04−0.04
a. What are the expected returns of the two stocks?
b. What are the standard deviations of the returns of the two
stocks?
c. If their correlation is
0.44
what is the expected return and standard deviation of a
portfolio of
78%
stock A and
22%
stock B?
The accompanying data set provides the closing prices for four stocks and the stock exchange over...
The accompanying data set provides the closing prices for four
stocks and the stock exchange over 12 days:
Date
A
B
C
D
Stock Exchange
9/3/10
127.37
18.34
21.03
15.51
10432.45
9/7/10
127.15
18.18
20.44
15.51
10334.67
9/8/10
124.92
17.88
20.57
15.82
10468.41
9/9/10
127.35
17.95
20.52
16.02
10498.61
9/10/10
128.37
17.82
20.42
15.98
10563.84
9/13/10
128.36
18.64
21.16
16.21
10616.07
9/14/10
128.61
18.83
21.29
16.22
10565.83
9/15/10
130.17
18.79
21.69
16.25
10627.97
9/16/10
130.34
19.16
21.76
16.36
10595.39
9/17/10...
The accompanying data set provides the closing prices for four stocks and the stock exchange over...
The accompanying data set provides the closing prices for four
stocks and the stock exchange over 12 days:
Date
A
B
C
D
Stock Exchange
9/3/10
127.37
18.34
21.03
15.51
10432.45
9/7/10
127.15
18.18
20.44
15.51
10334.67
9/8/10
124.92
17.88
20.57
15.82
10468.41
9/9/10
127.35
17.95
20.52
16.02
10498.61
9/10/10
128.37
17.82
20.42
15.98
10563.84
9/13/10
128.36
18.64
21.16
16.21
10616.07
9/14/10
128.61
18.83
21.29
16.22
10565.83
9/15/10
130.17
18.79
21.69
16.25
10627.97
9/16/10
130.34
19.16
21.76
16.36
10595.39
9/17/10...
The accompanying data set provides the closing prices for four stocks and the stock exchange over...
The accompanying data set provides the closing prices for four
stocks and the stock exchange over 12 days:
Date
A
B
C
D
Stock Exchange
9/3/10
127.37
18.34
21.03
15.51
10432.45
9/7/10
127.15
18.18
20.44
15.51
10334.67
9/8/10
124.92
17.88
20.57
15.82
10468.41
9/9/10
127.35
17.95
20.52
16.02
10498.61
9/10/10
128.37
17.82
20.42
15.98
10563.84
9/13/10
128.36
18.64
21.16
16.21
10616.07
9/14/10
128.61
18.83
21.29
16.22
10565.83
9/15/10
130.17
18.79
21.69
16.25
10627.97
9/16/10
130.34
19.16
21.76
16.36
10595.39
9/17/10...
Stocks A and B have the following returns: Stock A Stock B 1 0.11 ...
Stocks A and B have the following returns:
Stock A
Stock B
1
0.11
0.06
2
0.06
0.04
3
0.15
0.04
4
0.03
0.01
5
0.07
-0.03
a. What are the expected returns of the two
stocks?
b. What are the standard deviations of the
returns of the two stocks?
c. If their correlation is 0.48, what is the
expected return and standard deviation of a portfolio of 56% stock
A and 44%...
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