3- Suppose you had $100,000 in investments at the beginning of the year that consisted of a diversified portfolio of stocks (60 percent) and bonds (40 percent). The returns over the past 12 months were 17 percent on stocks and 8 percent on bonds. a) What is the portfolio return for the year? b) If you wanted to rebalance this portfolio to its original position, what specific actions should you take? 4- You invested a total of $10,000 in two stocks ($5,000 in each) with different betas: stock A with a beta of 1.15 and stock B with a beta of 2.86. a) If the stock market rises 10 percent over the next year, what will be the value of each investment? b) If the stock market declines 10 percent over the next year, what will be the value of each investment?

Review the excerpted table of historic returns shown below.  The returns have all been annualized after having calculated monthly returns for the previous five years.  In addition, information is provided about the average, the volatility, and the sensitivity of the possible investments.                             Time Period # Market Return Firm W Firm X Firm Y Firm Z T-Bill 1 0.333 0.191 0.218 0.955 0.601 0.035 2 -0.144 -0.423 -0.632 -0.747 -0.472 0.039 3 0.143 0.348 0.470 0.379 0.378 0.040 4 0.316 0.871 0.868 -0.192 0.502 0.036 5 0.178 0.912 0.499 0.694 0.364 0.036 6 -0.014 0.532 0.168 -0.671 -0.064 0.038 … … … … … … … … … … … … … … 59 0.374 0.556 1.014 0.023 0.698 0.037 60 0.173 0.547 0.092 0.658 0.222 0.036               Average Return 0.082 0.113 0.067 0.167 0.121 0.029 Standard…

Review the excerpted table of historic returns shown below.  The returns have all been annualized after having calculated monthly returns for the previous ten years.  In addition, information is provided about the average, the volatility, and the sensitivity of the possible investments.                             Time Period # Market Return Firm W Firm X Firm Y Firm Z T-Bill 1 0.333 0.191 0.218 0.955 0.601 0.035 2 -0.144 -0.423 -0.632 -0.747 -0.472 0.039 3 0.143 0.348 0.470 0.379 0.378 0.040 4 0.316 0.871 0.868 -0.192 0.502 0.036 5 0.178 0.912 0.499 0.694 0.364 0.036 6 -0.014 0.532 0.168 -0.671 -0.064 0.038 … … … … … … … … … … … … … … 119 0.374 0.556 1.014 0.023 0.698 0.037 120 0.173 0.547 0.092 0.658 0.222 0.036               Average Return 0.082 0.113 0.067 0.167 0.121 0.029 Standard…

Over the past 3 years, your stock fund earned returns of 10%, -8%, and 12%.  What average annual compounded rate did you earn?  That is, what is the geometric average rate of return?

How do you arrive at that answer ? Can you tell me all your working out and explanation for each step ?

You presently own stock that you purchased one year ago. Your return on the stock for the past year was 20%. You calculate your real return on investment was 12.15%. The rate of inflation must have been Select one: О a.5% O b. 7% O c.3% O d.11% O e. 9%

6. Suppose that the simple annual returns on an investment over a 3-year period are: 8%, 2%, and 12%. What is the closest to the annualised holding period return? (a) 22.0% (b) 7.25% (c) 7.33% (d) 23.4% 7. A stock is currently trading at 20. Assume that at the end of one month it will either be 23 or 17. The risk-free interest rate is 5% per annum. The value of an ATM put option with a maturity of 1 month is closest to (a) 0.55 (b) 0.95 (c) 1.45 (d) 3.00

help answer the question in the image

Suppose that a stock gave a realized return of 15% over a two-year time period and a 5% return over the third year. The geometric average annual return is: ..... O A. 5.78% В. 8.67% C. 9.83% O D. 11.57%

Suppose that your estimates of the possible one-year returns from investing in the common stock of the AYZ Corporation were as follows:   Probability of occurrence 0.15 0.25 0.3 0.15 0.15 Possible return -10% 5% 20% 35% 50%   What are the expected return? Calculate the standard deviation?