ASSUME that the one year returns for COMPANY A are still {25%, -15%, 120%, -30%, -45%}. Assume also that you acquired shares in COMPANY B, which has had annual returns over the same period, of: {27; 35%; -10%; 10%; -15%}. What is the correlation between the returns on COMPANY A and COMPANY B shares? Multiple Choice 0.567 - 0.356 0.278 - 0.204 Assume that you own a portfolio comprised of 45% COMPANY A and 55% COMPANY B. What return do you expect to earn next year on this portfolio? Multiple Choice 9.74% 13.58% 10.12% 15.25%
ASSUME that the one year returns for COMPANY A are still {25%, -15%, 120%, -30%, -45%}. Assume also that you acquired shares in COMPANY B, which has had annual returns over the same period, of: {27; 35%; -10%; 10%; -15%}. What is the correlation between the returns on COMPANY A and COMPANY B shares? Multiple Choice 0.567 - 0.356 0.278 - 0.204 Assume that you own a portfolio comprised of 45% COMPANY A and 55% COMPANY B. What return do you expect to earn next year on this portfolio? Multiple Choice 9.74% 13.58% 10.12% 15.25%
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
Related questions
Question
![ASSUME that the one year returns for
COMPANY A are still (25%, -15%, 120%,
-30%, -45%}. Assume also that you acquired
shares in COMPANY B, which has had annual
returns over the same period, of:
{27; 35%; -10%; 10%; -15%}.
What is the correlation between the returns
on COMPANY A and COMPANY B shares?
Multiple Choice
0.567
- 0.356
0.278
- 0.204
Assume that you own a portfolio comprised
of 45% COMPANY A and 55% COMPANY B.
What return do you expect to earn next year
on this portfolio?
Multiple Choice
9.74%
13.58%
10.12%
15.25%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feef3c14d-ebc5-441e-a83b-7002b91c121f%2Fbc7232b8-78f4-4212-b717-a5ab40c03ba4%2Fzkrhcn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ASSUME that the one year returns for
COMPANY A are still (25%, -15%, 120%,
-30%, -45%}. Assume also that you acquired
shares in COMPANY B, which has had annual
returns over the same period, of:
{27; 35%; -10%; 10%; -15%}.
What is the correlation between the returns
on COMPANY A and COMPANY B shares?
Multiple Choice
0.567
- 0.356
0.278
- 0.204
Assume that you own a portfolio comprised
of 45% COMPANY A and 55% COMPANY B.
What return do you expect to earn next year
on this portfolio?
Multiple Choice
9.74%
13.58%
10.12%
15.25%
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