02 Jan State of Economy Probability
Question 1
5 / 5 pts
A firm you are analyzing has had the following returns the past 5 years: 27.0%, 13.0%, 18.0%, -14.0% and 9.0 %. What are the standard deviation and variance of the past five year returns?
0.1531, 0.0234
0.1369, 0.0187
0.1531, 0.0187
Question 2
5 / 5 pts
A stock has had returns of 16.12%, 22.11%, -25.00%, 26.14%, and 16.00% over the past five years. What was the holding period return for the stock?
55.61%
155.61%
50.67%
Question 3
10 / 10 pts
You are constructing a two stock portfolio based on the information provided below. What dollar amount will you invest in each stock to achieve the desired return goal?
Stock X Stock Y
Expected Return 14.0% 9.0%
Goal Return of Portfolio: 12.90%
Dollar Amount to Invest: $10,000
X = $7,800; Y = $2,200
X = $2,200; Y = $7,800
X = $6,800; Y = $3,200
Question 4
10 / 10 pts
Your stock portfolio contains 4 stocks with the following betas and weight as a percentage of your portfolio. What is the portfolio beta?
Weight Beta
Stock A 10 pct. 0.75
Stock B 35 pct. 1.90
Stock C 20 pct. 1.38
Stock D 35 pct. 1.16
1.42
1.30
1.36
Question 5
10 / 10 pts
Based on the following information determine the covariance and correlation between the returns of the two stocks.
State of Economy Probability of State of Economy Return of X Return of Y
Bear 0.35 -0.02 0.034
Normal 0.60 0.138 0.062
Bull 0.05 0.218 0.092
Cov = 0.001243, Corr=0.9794
Cov = 0.001243, Corr=0.00025
Cov= 0.001469, Corr=0.9610
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteEdu. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
Do you need help with this question?
Get assignment help from WriteEdu.com Paper Writing Website and forget about your problems.
WriteEdu provides custom & cheap essay writing 100% original, plagiarism free essays, assignments & dissertations.
With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Chat with us today! We are always waiting to answer all your questions.