Calculate the 95% confidence intervals for the four different investments included in the following table.S&P TSXCompositeIndexAverage Return (%)Standard Deviation of Returns (%)10.9416.43The 95% confidence interval of the S&P TSX Composite Index is between % and %(Round to two decimal places. Use ascending order)CLUBS&P 500Indexin CAD8.5316.93Long-TermGov't of CanadaBonds7.8311.48CanadianTreasuryBills5.984.35

Calculate the 95% confidence intervals for the four different investments included in the following table. S&P TSX Composite Index 10.94 16.43 Average Return (%) Standard Deviation of Returns (5%) The 95% confidence interval of the S&P TSX Composite index is between % and % (Round to two decimal places. Use ascending order) S&P 500 Index in CAD 8.53 16.93 Long-Term Gov't of Canada Bonds 7.83 11.48 Canadian Treasury Bills 5.98 4.35

Calculate the 95% confidence intervals for the four different investments included in the following table. S&P TSX Composite Index 10.94 16.43 Average Return (%) Standard Deviation of Returns (5%) The 95% confidence interval of the S&P TSX Composite index is between % and % (Round to two decimal places. Use ascending order) S&P 500 Index in CAD 8.53 16.93 Long-Term Gov't of Canada Bonds 7.83 11.48 Canadian Treasury Bills 5.98 4.35

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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Review the following market information: Current Stock Market Return 11.25% Current T-Bill Price $979.43 Historic T-Bill Average Return 2.80% Historic Stock Market Average Return 8.10% Stock Beta 1.23 What is the required return (rounded to two places)?
onsider 123 Fund (which is invested in 35% High risk stock and 65% normal bonds). Assume you have the following historical data of annual returns: Return S.D. Normal Stock 8% 20% Risky Bonds 10% 35% High Risk Stock 14% 40% Normal Bonds 6% 10% Assume High Risk Stocks and Normal Bonds have correlation coefficient of 0.24 Find the standard deviation of 123. Please use 5 decimal places in your response. Note: The right answer is 0.1679 Please explain step by step
You are choosing between these four investments, and you want to be 95% certain that you do not lose more than 18.00% on your investment. Which investments could you choose? Average Return Standard Deviation of Returns S&P TSX 10.32% 16.35% S&P 500 in CAD 12.10% 17.00% Long-Term Gov't of Canada Bonds 7.89% 10.20% Which of the following have the lower bound of the estimated range greater than 18.00%? A. All of the Investments B. T-Bills only C. S&P TSX and S&P 500 in CAD D. Long-term Government of Canada Bonds and S&P 500 in CAD E. Long-term Government of Canada Bonds and T-Bills T-Bills 5.59% 3.93%
Consider two asset classes: Stocks and Bonds. You estimate the following parameters for these two asset class funds. correlation matrix b/n Stocks and Bonds E(r ) sd(r) Stocks Bonds Stocks 19% 28% 10.5 Bonds 10% 8% 0.5 1 Consider a $80,000 portfolio consisting of $60,000 in Stocks and $20,000 in Bonds. So, the portfolio is 75% in Stocks and 25% in Bonds. Given the expected return on the portfolio is 16.75%, and the standard deviation of the portfolio return is 22.07%, what is the 2.5% value at risk (note: the 95% confidence interval lower limit on the portfolio value is the value of the portfolio at this level of loss)? (use 2 decimals without $, so a loss of -$10.00 is -10.00) Answer:Question 2 - 21205.76 Feedback The correct answer is: -21908.92 expain
Current Attempt in Progress To achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock B, assuming the correlation coefficient is-1. Use the following information. (Round intermediate calculations and final answers to 2 decimal places, e.g. 31.21%.) State of the economy Probability of Expected return on Expected return on occurrence stock A in this state stock B in this state High growth 30% 41.5% 56.5% Moderate growth 25% 21.5% 26.5% Recession 45% -11.5% -21.5% Weight of stock A % Weight of stock B %
Pls help ASAP
The expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Incorporated, and 70 percent invested in Down Company are the following: Down 3 Doors, Incorporated Company 13% 10% Expected return, E(R) Standard deviation, o 46 35 What is the standard deviation if the correlation is +1? 0? -1? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Standard Deviation Correlation +1 % Correlation 0 Correlation-1 % %
Use this info to answer question 10, please don't answer 8: Use the following information to answer questions 8-10. In a particular year, the Pontipines Fund earned a return of 1% by making the following investments in asset classes: The return on a bogey portfolio was 2%, calculated from the following information: The total abnormal return on the Pontipines Fund's managed portfolio was: A) - 1.80% B) -1.00% C) 0.80% D ) 1.00% 10) The contribution of selection within markets to the Pontipines Fund's total abnormal return was: A) -1.80% B ) -1.00% C) 0.80% D) 1.00%
Required: Using Table 5.3 as your guide, what is your estimate of the expected annual HPR on the market index stock portfolio if the current risk- free interest rate is 4.3% ? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. 0.120 Expected annual HPR TABLE 5.3 Risk and return of investments in major asset classes, 1927-2018 Average Risk premium Standard deviation max min T-bills 3.38 na 3.12 14.71 -0.02 T-bonds 5.83 2.45 11.59 41.68 -25.96 Stocks 11.72 8.34 20.05 57.35 -44.04
Use the following information to calculate the expected return and standard deviation of a portfolio that is 60 percent invested in 3 Doors, Incorporated, and 40 percent invested in Down Company: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Expected return, E(R) Standard deviation, o Correlation Expected return Standard deviation 3 Doors, Incorporated 16% 46 0.31 2.00% 2.00% Down Company 24% 48
The expected return and standard deviation of a portfolio that is 50 percent invested in 3 Doors, Incorporated, and 50 percent invested in Down Company. are the following: Expected return, E(R) Standard deviation, o 3 Doors, Incorporated 14% 42 Correlation +1 Correlation 0 Correlation-1 What is the standard deviation if the correlation is +1? 0? -1? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Standard Deviation 33.61 % Down Company 10% 31 %
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