Consider the following information about Stocks I and II:
| State of Economy | Probability of state of economy | Stock 1 | Stock 2 |
| Recession | 0.28 | 0.05 | -0.20 |
| Normal | 0.53 | 0.17 | 0.07 |
| Irrational Exuberance | 0.19 | 0.06 | 0.40 |
The market risk premium is 8 percent, and the risk-free rate is 2 percent.
The standard deviation on Stock 1's return is ________ percent, and the Stock 1 beta is _________. The standard deviation on Stock 2's return is ________ percent, and the Stock 2 beta is _________. Therefor, based on the stock's systematic risk/beta, Stock ______ is "riskier"
In: Finance
| Consider the following information about three stocks: |
| Rate of Return If State Occurs | ||||||||||||
| State of | Probability of | |||||||||||
| Economy | State of Economy | Stock A | Stock B | Stock C | ||||||||
| Boom | .26 | .32 | .44 | .56 | ||||||||
| Normal | .50 | .13 | .11 | .09 | ||||||||
| Bust | .24 | .04 | −.25 | −.45 | ||||||||
| a-1 |
If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Portfolio expected return | % |
| a-2 |
What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) |
| Variance |
| a-3 |
What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Standard deviation | % |
| b. |
If the expected T-bill rate is 3.30 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Expected risk premium | % |
| c-1 |
If the expected inflation rate is 2.90 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Approximate expected real return | % |
| Exact expected real return | % |
| c-2 |
What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Approximate expected real risk premium | % |
| Exact expected real risk premium | % |
In: Finance
| Consider the following information about three stocks: |
| Rate of Return If State Occurs | ||||||||||||
| State of | Probability of | |||||||||||
| Economy | State of Economy | Stock A | Stock B | Stock C | ||||||||
| Boom | .20 | .28 | .40 | .56 | ||||||||
| Normal | .45 | .22 | .20 | .18 | ||||||||
| Bust | .35 | .00 | −.20 | −.48 | ||||||||
| a-1. |
If your portfolio is invested 30 percent each in A and B and 40 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| a-2. | What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) |
| a-3. | What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| b. | If the expected T-bill rate is 4.20 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| c-1. | If the expected inflation rate is 3.80 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| c-2. | What are the approximate and exact expected real risk premiums on the portfolio?(Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
In: Finance
| Consider the following information about three stocks: |
| Rate of Return If State Occurs | ||||||||||||
| State of | Probability of | |||||||||||
| Economy | State of Economy | Stock A | Stock B | Stock C | ||||||||
| Boom | .20 | .26 | .38 | .50 | ||||||||
| Normal | .50 | .10 | .08 | .06 | ||||||||
| Bust | .30 | .01 | −.20 | −.40 | ||||||||
| a-1 |
If your portfolio is invested 30 percent each in A and B and 40 percent in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Portfolio expected return | % |
| a-2 |
What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) |
| Variance |
| a-3 |
What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Standard deviation | % |
| b. |
If the expected T-bill rate is 3.00 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Expected risk premium | % |
| c-1 |
If the expected inflation rate is 2.60 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Approximate expected real return | % |
| Exact expected real return | % |
| c-2 |
What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Approximate expected real risk premium | % |
| Exact expected real risk premium | % |
In: Finance
| Consider the following information about three stocks: |
| Rate of Return If State Occurs | ||||||||||||
| State of | Probability of | |||||||||||
| Economy | State of Economy | Stock A | Stock B | Stock C | ||||||||
| Boom | .20 | .28 | .40 | .56 | ||||||||
| Normal | .45 | .22 | .20 | .18 | ||||||||
| Bust | .35 | .00 | −.20 | −.48 | ||||||||
| a-1 |
If your portfolio is invested 30 percent each in A and B and 40 percent in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Portfolio expected return | % |
| a-2 |
What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) |
| Variance |
| a-3 |
What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Standard deviation | % |
| b. |
If the expected T-bill rate is 4.20 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Expected risk premium | % |
| c-1 |
If the expected inflation rate is 3.80 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Approximate expected real return | % |
| Exact expected real return | % |
| c-2 |
What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Approximate expected real risk premium | % |
| Exact expected real risk premium | % |
In: Finance
Consider the following information about Stocks A and B: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession 0.26 0.03 − 0.34 Normal 0.56 0.20 0.14 Irrational exuberance 0.18 0.09 0.54 The market risk premium is 5 percent, and the risk-free rate is 3 percent. (Round your answers to 2 decimal places. (e.g., 32.16)) The standard deviation on Stock A's return is percent, and the Stock A beta is . The standard deviation on Stock B's return is percent, and the Stock B beta is . Therefore, based on the stock's systematic risk/beta, which Stock is "riskier".
In: Finance
Describe allosteric regulation of enzyme activity. How does allosteric inhibition differ from other modes of regulation, and how can these work in concert to finely regulate enzyme activity? Provide an example, describe in detail, and use diagrams to help illustrate your point.
In: Biology
1. Discuss in detail the 4 steps of active reading and how you
will use this week's chapter and video information to strengthen
your reading and remembering skills.
2. Provide at least 2 personal examples on how you will apply
active reading and remembering strategies.
In: Psychology
Given the following attributes in a project management:
Discuss in detail each of them and on how would you use them as the IT manager for the company. Provide a details information support your discussion.
In: Computer Science
1) Describe and explain Davey’s (1969) J-curve theory of the “revolution of rising expectations.” What controversial conclusion does the theory suggest about the use (or non-use) of government means to achieve group equality?
2) List and briefly explain the findings of Pettigrew’s (1959; 1960) study of conformity and prejudice. Who is most likely to express prejudice? Who is least likely? Why?
3) Describe the relationship between religious orientation and prejudice. Of what relevance are intrinsic and extrinsic orientations? Explain “quest” and “fundamentalism,” and describe why they’re important. Be sure to define all terms in your answer.
4) List and briefly explain at least four of the traits found in the authoritarian personality as measured by the F-Scale (Adorno et al. 1950)? Which of these traits may also be found in Altemeyer’s (1998) “right-wing authoritarian”? How does Altemeyer’s theory differ from that of Adorno et al.? Be specific.
In: Psychology