For Asset A and for Asset B, compute the average annual return,
variance, standard deviation, and...
For Asset A and for Asset B, compute the average annual return,
variance, standard deviation, and coefficient of variation for the
annual returns given below. a. Asset A: 5%, 10%, 15%, 4% b. Asset
B: -6%, 20%, 2%, -5%, 10%
9. Compute the average annual return and standard deviation of
an evenly weighted portfolio of stocks and 10-year government bonds
over the past five years ended December 31, 2018?
1. Asset A has an expected return of 15% and standard deviation of
20%. Asset B has an expected return of 20% and standard deviation
of 15%. The riskfree rate is 5%. A risk-averse investor would
prefer a portfolio using the risk-free asset and _______.
A) asset A
B) asset B
C) no risky asset
D) cannot tell from data provided2. The Sharpe-ratio is useful for
A) borrowing capital for investing
B) investing available capital
C) correctly...
Suppose the average return on Asset A is 7.0 percent and the
standard deviation is 8.2 percent and the average return and
standard deviation on Asset B are 4.1 percent and 3.5 percent,
respectively. Further assume that the returns are normally
distributed. Use the NORMDIST function in Excel® to answer the
following questions.
a.
What is the probability that in any given year, the return on
Asset A will be greater than 11 percent? Less than 0 percent?
(Round your...
Suppose the average return on an asset is 12.3 percent and the
standard deviation is 20.8 percent. Further assume that the returns
are normally distributed. Use the NORMDIST function in Excel® to
determine the probability that in any given year you will lose
money by investing in this asset.
Probability?
Suppose the average return on Asset A is 6.8 percent and the
standard deviation is 8.8 percent, and the average return and
standard deviation on Asset B are 4 percent and 3.4 percent,
respectively. Further, assume that the returns are normally
distributed. Use the NORMDIST function in Excel® to answer the
following questions. a. What is the probability that in any given
year, the return on Asset A will be greater than 10 percent? Less
than 0 percent? (Do not...
Suppose the average return on an asset is 12.3 percent and the
standard deviation is 21.9 percent. Further assume that the returns
are normally distributed. Use the NORMDIST function in Excel® to
determine the probability that in any given year you will lose
money by investing in this asset.
Suppose the average return on Asset A is 7.1 percent and the
standard deviation is 8.3 percent, and the average return and
standard deviation on Asset B are 4.2 percent and 3.6 percent,
respectively. Further assume that the returns are normally
distributed. Use the NORMDIST function in Excel® to answer the
following questions. a. What is the probability that in any given
year, the return on Asset A will be greater than 12 percent? Less
than 0 percent? (Do not...
Suppose the average return on Asset A is 6 percent and the
standard deviation is 8 percent, and the average return and
standard deviation on Asset B are 3.2 percent and 2.6 percent,
respectively. Further assume that the returns are normally
distributed. Use the NORMDIST function in Excel® to answer the
following questions.
a. What is the probability that in any given year, the return on
Asset A will be greater than 9 percent? Less than 0 percent?
b. What...