4. Calculate the portfolio variance and standard deviation set by filling in the blanks, using therrelation coefficient Corr(n) is -0.2.Portfolio Standardfollowing percentaPercent Investedin China Inc.stock100%90%80%70%60%50%40%30%20%10%0%m1= +Percent investedin Norway Corp.stock0%10%20%30%40%50%60%70%80%90%100%Portfolio Variance0.01960.057614%24%Deviation

Portfolio standard deviation is a measure of the dispersion or variability of returns of a portfolio…

4. Calculate the portfolio variance and standard deviation set by filling in the blanks, using the following percenta orrelation coefficient Corr() is -0.2. Percent Invested in China Inc. stock 100% 90% 80% 70% TI = + Percent invested in Norway Corp. stock 0% 10% 20% 30% Portfolio Variance 0.0196 Portfolio Standard 14% Deviation

4. Calculate the portfolio variance and standard deviation set by filling in the blanks, using the following percenta orrelation coefficient Corr() is -0.2. Percent Invested in China Inc. stock 100% 90% 80% 70% TI = + Percent invested in Norway Corp. stock 0% 10% 20% 30% Portfolio Variance 0.0196 Portfolio Standard 14% Deviation

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Question 1. Calculate the variance and standard deviation of a portfolio of two stocks. Question 2. Suppose the volatility of stock 2 is 16%, but the weight of stock 2 in the portfolio is 15%, will there be any effect on the standard deviation of the portfolio?
None
8. A portfolio consists of bonds, stocks, commodities and real estates. The portfolio weightings, expected returns, variances and correlation matrix are shown below. Bonds Stocks Commodities Real Estate Correlation Matrix Bonds Stocks Commodities Real Estate Weight 50% 10% 15% 25% Bonds 1.0 Stocks -0.2 1.0 Expected Return 8% 12% 20% 16% Commodities 0.1 0.4 1.0 Variance (%²) 10 30 15 20 Real Estate 0.3 0.6 0.2 1.0 a. Calculate the expected return and the standard deviation of the return of the portfolio.
Assume that the following data available for the portfolio, calculate the expected return, variance and standard deviation of the portfolio given stock A accounts for 45% and stock B accounts for 55% of your portfolio? (4 marks) A B Expected return 12.5% 18.5% Standard Deviation of return 15% 20% Correlation of coefficient (p) 0.4
Refer to the table below: 3 Doors, Inc. Down Co. Expected return, E(R) Standard deviation, o Correlation 15% 10% 30 18 0.39 Using the Information provided on the two stocks in the table above, find the expected return and standard deviation on the minimum variance portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return % Standard deviation %
8. A portfolio consists of bonds, stocks, commodities and real estates. The portfolio weightings, expected returns, variances and correlation matrix are shown below. Weight Expected Return Variance (%2) Bonds 50% 10% 15% 25% 8% 12% 20% 16% 10 30 15 20 0.1 0.3 0.4 0.6 1.0 0.2 1.0 Stocks Commodities Real Estate Correlation Matrix Bonds 1.0 -0.2 1.0 Stocks Commodities Real Estate Bonds Stocks Commodities Real Estate Calculate the standard deviation of the return of the portfolio.
Calculate this please Only typed solution
What is the standard deviation of the portfolio that invests equally in all three assets M, N, and O?
Find out the 1- standard deviation 2- variance weight Investment*expected return stock weight Investment Investment Amount expected return stock stocks 0.261 1.45 75000 0.18 Alba Co. 0.0504 0.56 75000 0.09 Batelco Co. 0.0371 0.1 75000 0.371 Delmon poultry. 0.3485 225000 Total
What is the bond proportion of the Minimum Variance Portfolio comprising: • equity with an expected return of 14% and standard deviation of 20% • bond with an expected return of 8% and standard deviation of 12% the correlation between equity and bond is 0.25? O A. 0.8019 O B. 0.6928 O C. None of the given answers is correct. O D. 0.1981
Yogesh
Consider the following information: Probability of State of State of Economy Book Bust Economy 0.55 Variance Rate of Return if State Occurs Stock A Stock B 0.06 0.14 0.10 0.02 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediat Round the final answer to 2 decimal places.) Expected return b. What is the variance of a portfolio invested 25% each in A and B and 50% in C? (Do not round intermediate calc the final answer to 6 decimal places.) 10.65% Stock C 0.34 -0.07

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