Assume a stock had an historical equity risk premium of 5.49 percent and a standard deviation...

Assume a stock had an historical equity risk premium of 5.49 percent and a standard deviation of 11.46 percent over the past two decades. What is the 95.4 percent range for the equity risk premium? -.18 to 9.26% -.57 to 15.09% .41 to 20.03% -.36 to 10.62% 1.08 to 22.49%

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You manage an equity fund with an expected risk premium of 13.2% and a standard deviation...

You manage an equity fund with an expected risk premium of 13.2% and a standard deviation of 46%. The rate on Treasury bills is 4.6%. Your client chooses to invest $105,000 of her portfolio in your equity fund and $45,000 in a T-bill money market fund. What is the reward-to-volatility (Sharpe) ratio for the equity fund? (Round your answer to 4 decimal places.)

You manage an equity fund with an expected risk premium of 10% and a standard deviation...

You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate on T-bills is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in T-bills. What is the expected return and standard deviation of your client's portfolio?

You manage equity fund with an expected risk premium of 12% and a standard deviation of...

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You manage an equity fund with an expected risk premium of 10.4% and a standard deviation...

You manage an equity fund with an expected risk premium of 10.4% and a standard deviation of 18%. The rate on Treasury bills is 5%. Your client chooses to invest $45,000 of her portfolio in your equity fund and $55,000 in a T-bill money market fund. What is the reward-to-volatility (Sharpe) ratio for the equity fund? (Round your answer to 4 decimal places.)

Throughout this problem assume that the expected market risk premium is 4% with a standard deviation...

Throughout this problem assume that the expected market risk premium is 4% with a standard deviation of 20% and that the risk-free interest rate is 0%. A stock has a beta of 2.1. Question: Explain what beta measures and compute the stock’s expected return.

Assume that the risk-free rate is 4.8 percent, and that the market risk premium is 4.1...

Assume that the risk-free rate is 4.8 percent, and that the market risk premium is 4.1 percent. If a stock has a required rate of return of 13.5 percent, what is its beta?

Stock A has an expected return of 20 percent and a standard deviation of 38 percent....

Stock A has an expected return of 20 percent and a standard deviation of 38 percent. Stock B has an expected return of 26 percent and a standard deviation of 42 percent. Calculate the expected return and standard deviations for portfolios with the 6 different weights shown below assuming a correlation coefficient of 0.28 between the returns of stock A and B. WA WB 1.00 0.00 0.80 0.20 0.60 0.40 0.40 0.60 0.20 0.80...

Consider a stock with a price of $120 and a standard deviation of 30 percent. The...

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The return, standard deviation, market risk premium and Beta (β) of A, B, C, D and...

The return, standard deviation, market risk premium and Beta (β) of A, B, C, D and the Market Portfolio and the risk-free interest rate are given in the table below. Find the performance of portfolios (excluding Sortino). PREPARED BY HANDWRİTİNG. portfolio return (rp) risk free interest rate (rf) std. deviation Beta market risk premium (rp-rf) A 18,00 11,00 6,00 1,24 7,00 B 12,00 11,00 2,00 0,87 1,00 C 9,00 11,00 ...

Stock M has a beta of 1.2. The market risk premium is 7.8 percent and the...

Stock M has a beta of 1.2. The market risk premium is 7.8 percent and the risk-free rate is 3.6 percent. Assume you compile a portfolio equally invested in Stock M, Stock N, and a risk-free security that has a portfolio beta equal to the overall market. What is the expected return on the portfolio? a.) 11.2% b.) 10.8% c.) 10.4% d.) 11.4% e.) 11.7%

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