Eric Poppovich invests money in two stocks for the upcoming year. His investment is shown below: # of shares Price Per Share Expected Return Standard Deviation 42.00 $36.95 6.00% 18.00% 21.00% 20.00 $51.29 8.00% STOCK: LBJ Corporation (A) Duncan Inc. (B) The correlation between LBJ and Duncan is 0.50. What is the standard deviation of the portfolio? Answer Format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) Enter Answer Here...

Eric Poppovich invests money in two stocks for the upcoming year. His investment is shown below: # of shares Price Per Share Expected Return Standard Deviation 42.00 $36.95 6.00% 18.00% 21.00% 20.00 $51.29 8.00% STOCK: LBJ Corporation (A) Duncan Inc. (B) The correlation between LBJ and Duncan is 0.50. What is the standard deviation of the portfolio? Answer Format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) Enter Answer Here...

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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Portfolio risk and return Emma holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock’s beta, is listed in the following table: Stock Investment Beta Standard Deviation Andalusian Limited (AL) $2,625 0.80 15.00% Kulatsu Motors Co. (KMC) $1,500 1.90 11.00% Water and Power Co. (WPC) $1,125 1.10 16.00% Makissi Corp. (MC) $2,250 0.50 28.50% Suppose all stocks in Emma’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Kulatsu Motors Co. Makissi Corp. Andalusian Limited Water and Power Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Water and Power Co. Makissi Corp. Andalusian Limited…
You are an active investor in the securities market and you have established an investment portfolio of two stock A and B five years ago. d) 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? ABExpected return12.5%18.5%Standard Deviation of return15%20%Correlation of coefficient (p)0.4
Consider a portfolio with stocks A, B, and C. The total value of the portfolio is $245,000 and it is fully invested in these 3 stocks. $85,653 is invested in A and $69,552 is invested in B. The Betas of stocks A, B, and C are 1.2, .8, and 1.62, respectively. What is the Beta of the portfolio overall?
None
Suppose you purchase 2 shares of Canadian Tire Corp. today at $11 per share. At the end of year 1 you receive $1 per share in dividends and you also buy 3 shares at $9 per share. At the end of year 2 you again receive $1 dividend per share and then you sell all your shares at $14 per share. The time-weighted geometric average return on this portfolio is approximately: a.27.1% b.18.9% c.19.5% d.31% e.23.1%
You own a stock portfolio invested 32 percent in Stock Q, 22 percent in Stock R, 19 percent in Stock S, and 27 percent in Stock T. The betas for these four stocks are 0.82, 0.97, 0.57, and 0.64, respectively. What is the portfolio beta? Enter the answer with 4 decimals (e.g. 1.1234)
Jill Valentine has $100,000 invested in a 2-stock portfolio. $30,000 is invested in Stock X, and the remainder is invested in Stock Y. Stock X's Beta is 1.40 and Y's Beta is 0.90. What is the portfolio's Beta? (Ch. 8) Group of answer choices 1.25 0.90 1.40 1.16 1.05 PreviousNext
You are an active investor in the securities market and you have established an investment portfolio of two stock A and B five years ago. Required: d) 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? A B Expected return 12.5% 18.5% Standard Deviation of return 15% 20% Correlation of coefficient (p) 0.4
You own a stock portfolio invested 23% in Stock Q, 22% in Stock R, 43% in Stock S, and 12% in Stock T. The betas for these four stocks are .87, .93, 1.33, and 1.78, respectively. What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Portfolio beta
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Suppose you bought $48,000 worth of stock A and $80,000 worth of stock B. The standard deviation of returns is 59% for stock A and 27% for stock B. The two stocks' returns have a correlation of 0.2. What is the standard deviation of this portfolio's returns? a. 15.2% b. 18.6% c. 23.6% O d. 26.9% O e. 30.4% QUESTION 10

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