Question
In: Finance
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% stock B?
Solutions
Expert Solution
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
AS NOTHING WAS MENTIONED, EXPECTED RETURN ROUNDED TO 2 DECIMALS AND STANDARD DEVIATION TILL 4 DECIMALS. THANK YOU
jeff jeffy answered 8 months agoRelated Solutions
Stocks A and B have the following? returns: Stock A Stock B 1 0.11 &nb
Stocks A and B have the following? returns:
Stock
A Stock B
1 0.11
0.05
2
0.06
0.02
3
0.15 0.05
4
-0.04
0.02
5
0.08
-0.04
a. What are the expected returns of ?stock A and Stock B?
b. What are the standard deviations of the returns of stock A
and stock B?
c. If their correlation is 0.43?, what is the expected return
and standard deviation of a portfolio of 55?% stock A and 45?%
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 0.08 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 0.110.11 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?
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns,
rA
Stock B's Returns,
rB
2011
- 22.40%
- 15.60%
2012
27.75
19.70
2013
10.00
37.00
2014
- 5.00
- 9.90
2015
23.75
2.90
a. Calculate the average rate of return for stock A during the
period 2011 through 2015. Round your answer to two decimal
places.
%_________
Calculate the average rate of return for stock B during the period
2011 through 2015. Round your answer to...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns,
rA
Stock B's Returns,
rB
2014
(16.20
%)
(13.00
%)
2015
33.50
24.10
2016
15.00
30.90
2017
(1.75
)
(9.60
)
2018
27.25
25.40
Calculate the average rate of return for each stock during the
period 2014 through 2018. Round your answers to two decimal places.
Stock A: %
Stock B: %
Assume that someone held a portfolio consisting of 50% of Stock
A and 50% of Stock B....
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock
A's Returns, rA Stock B's Returns, rB 2013 - 19.40% - 17.90% 2014
37.75 23.80 2015 15.25 35.70 2016 - 5.50 - 6.70 2017 26.25
19.45
A. Calculate the average rate of return for stock A during the
period 2013 through 2017. Round your answer to two decimal places.
%
Calculate the average rate of return for stock B during the
period 2013 through 2017. Round your answer to...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year Stock A's Returns, rA Stock B's Returns, rB
2014 (18.50 %) (13.50%)
2015 32.50 19.90
2016 16.75 25.50
2017 (5.00 ) (12.70 )
2018 27.50 34.05
a. Calculate the average rate of return for each stock during
the period 2014 through 2018. Round your answers to two decimal
places.
Stock A: % Stock B: %
b. Assume that someone held a portfolio consisting of 50% of
Stock A and 50%...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns, rA
Stock B's Returns, rB
2013
- 23.10%
- 16.70%
2014
39.25
28.30
2015
16.50
37.90
2016
- 1.75
- 7.70
2017
26.25
15.35
a Calculate the average rate of return for stock A during the
period 2013 through 2017. Round your answer to two decimal
places.
Calculate the average rate of return for stock B
during the period 2013 through 2017. Round your answer to...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns, rA
Stock B's Returns, rB
2011
- 23.90%
- 12.00%
2012
24.75
27.40
2013
11.75
38.40
2014
- 1.25
- 6.50
2015
24.75
-11.20
Calculate the average rate of return for stock A during the
period 2011 through 2015. Round your answer to two decimal
places.
%
Calculate the average rate of return for stock B during the period
2011 through 2015. Round your answer to two...
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