Problem 9-8 Spreadsheet Problem: Portfolio Return (LG9-7)Consider the year-to-date returns of Yum Brands, Raytheon, and Coca-Cola.A12 Return3 WeightBYum Brands3.40%Portfolio return0.40CRaytheon4.43%0.30If you have a portfolio made up of the weights shown below, what is your portfolio return?Note: Do not round intermediate calculations and round your final answer to 2 decimal places.D-Coca-Cola-0.50 %0.30%

Portfolio Return = (Return1*Weight1)+(Return2*Weight2)+(Return3*Weight3)where,Return1=Return of…

Consider the year-to-date returns of Yum Brands, Raytheon, and Coca-Cola. A 1 2 Return 3 Weight B Yum Brands 3.40 % 0.40 C Raytheon 4.43 % 0.30 Coca-Cola -0.50% 0.30 If you have a portfolio made up of the weights shown below, what is your portfolio return? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.

Consider the year-to-date returns of Yum Brands, Raytheon, and Coca-Cola. A 1 2 Return 3 Weight B Yum Brands 3.40 % 0.40 C Raytheon 4.43 % 0.30 Coca-Cola -0.50% 0.30 If you have a portfolio made up of the weights shown below, what is your portfolio return? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.

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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N1
If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company: High price Low price EPS Year 1 $ 85.61 68.33 6.46 a. High target price b. Low target price Year 2 $94.99 79.75 8.88 Year 3 $ 116.05 84.23 8.54 Year 4 $ 128.08 105.86 10.13 Earnings are expected to grow at 5.5 percent over the next year. a. What is the high target stock price over the next year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the low target stock price over the next year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
State the return rate (in %) for your optimal portfolio.
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
Dog
Compute the annual tracking error from the following information: Quarter Portfolio B's 1 2 3 4 O 1.06% O 2.12% O 3.67% O 4.25% O None Portfolio A's Return (%) 1.15 1.89 1.15 -0.47 Return (%) 1.65 -0.10 0.52 -0.60
At the beginning of the month, you owned $5,000 of General Dynamics, $4,000 of Starbucks, and $7,000 of Nike. The monthly returns for General Dynamics, Starbucks, and Nike were 7.50 percent, -1.66 percent, and -0.69 percent. What is your portfolio return? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Portfolio return 2.44 %
Consider the following returns and states of the economy for TZ.Com.: Economy ProbabilityReturn Weak 15% Normal 50% Strong 35% -9% 2% 6% What is the standard deviation of TZ's returns? SET YOUR CALCULATOR TO FOUR DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE %. FOR EXAMPLE, IF YOUR ANSWER IS 7.7011% ENTER IT AS 7.70.
Ebenezer Scrooge has invested 65% of his money in share A and the remainder in share B. He assesses their prospects as follows: A B Expected return (%) 16 21 Standard deviation (%) 23 27 Correlation between returns 0.5 What are the expected return and standard deviation of returns on his portfolio? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. How would your answer change if the correlation coefficient were 0 or −0.50? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Is Mr. Scrooge’s portfolio better or worse than one invested entirely in share A, or is it not possible to say?
UNIT 7-5
Show the monthly return of the company and S&P 500 in the same graph. What is your interruption interpretation of the change of return of the company comparing with the market index? Calculate the monthly standard deviation and return for both the company and S&P 500. What is your interruption of the risk and return of the company comparing with the market index? S&P 500 last 6 months : Date Open High Low Close* Adj. close** Volume 01 Apr 2022 4,540.32 4,593.45 4,381.34 4,392.59 4,392.59 37,024,560,000 01 Mar 2022 4,363.14 4,637.30 4,157.87 4,530.41 4,530.41 100,978,320,000 01 Feb 2022 4,519.57 4,595.31 4,114.65 4,373.94 4,373.94 73,167,790,000 01 Jan 2022 4,778.14 4,818.62 4,222.62 4,515.55 4,515.55 73,279,440,000 01 Dec 2021 4,602.82 4,808.93 4,495.12 4,766.18 4,766.18 68,699,830,000…
Considering the attached set of securities and portfolio returns: Assume that you initially invested $1,000,000 in the portfolio and that the distribution of the annual rate of return of the portfolio is normal. What is the distribution of the return of the portfolio 20 years after its formation? Provide the graph of the distribution of the return of the portfolio.

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