Given the following information, what is (i) the expected return and (ii) the portfolio standard deviation (to the nearest 0.01%)? State Probability Return Вoom .1 .45 Good .6 25 Recession .3 .05 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a (1) 259% and (ii) 14% (1) 219% and (ii) 12% (i) 25% and (ii) 126 None of the above ) 2196 and (ii) 1496 e

Given the following information, what is (i) the expected return and (ii) the portfolio standard deviation (to the nearest 0.01%)? State Probability Return Вoom .1 .45 Good .6 25 Recession .3 .05 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a (1) 259% and (ii) 14% (1) 219% and (ii) 12% (i) 25% and (ii) 126 None of the above ) 2196 and (ii) 1496 e

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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Given the following probability distribution, what is the standard deviation of returns for Security J? (Expresss your answer in percentage, but do not include the percent sign, %, i.e., 4.65) State Pi rJ 1 0.2 8 % 2 0.6 12 3 0.2 17
On January 2, 2021, $225150 in 11 year, 5% bonds with a market interest rate of 9%, and interest payable semiannually, were issued for $189980. On June 30, bond interest was paid. On December 31, the corporation showed an after tax Net Income of $53630. On December 31, bond interest was paid; and dividends were declared and paid. What is the Bond Interest Expense on the Income Statement on December 31, 2021??
An asset has normally-distributed returns, with mean of 10.6% and standard deviation of 14.8%. What is the 2% VaR (value at risk) return? Enter answer in percents.
Given the following probability distribution, what is the expected return and the standard deviation of returns for Security J? The answer choice lists expected return and standard deviation in the respective order. State 1 2 3 Pri 0.2 O 12%; 5.18% O 15%; 3.16% O 15%; 6.50% 0.6 0.2 O 20%; 5.00% 15%; 10.00% rj 10% 15 20
Possible returns and their probabilities for an asset is given in the table below. The expected return is 30.25%. Calculate the standard deviation of the asset's return. Probability 0.40 0.45 0.15 13.92% O 17.84 % 18.55% O 19.09% 16.59% Return 0.52 0.17 0.12
from the table below. Assuming the risk- free rate is 5%. A. Choose the best portfolio according to the Sharpe measure with explanation. B. Choose the best portfolio according to the Treynor measure with explanation. C. Choose the best portfolio according to the Jensen measure with explanation. Portfolio A 0.1 0.1 0.11 0.11 0.12 0.12 0.13 0.14 0.14 0.18 0.16 0.18 0.17 0.18 0.18 0.18 0.18 0.17 0.17 0.18 Portfolio B 0.12 0.12 0.16 0.2 0.14 0.16 0.17 0.14 0.18 0.2 0.18 0.16 0.17 0.2 0.22 0.22 0.18 0.2 0.24 0.24 Mraket M 0.09 0.09 0.1 0.1 0.11 0.11 0.11 0.12 0.12 0.13 0.12 0.14 0.12 0.14 0.13 0.13 0.13 0.14 0.14 0.13
The following expected return and the standard deviation of current returns are known: Security (i) Expected Return Standard Deviation βi A 0.20 0.12 1.1 B 0.12 0.10 0.8 T-Bills 0.05 0 0 Market Portfolio 0.20 0.15 1 Required: Determine the weights of a portfolio with a standard deviation of 7% created by combining T-Bill and the market portfolio.
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An investor has preferences represented by the utility function U = E(r) - 20². What is her certainty equivalent return for a portfolio with an expected return of 10% and a standard deviation of 15%? Oa. 1.0% O b. 2.5% O c. 0.5% O d. 5.5% O e. 10.0%
No excel please. Show formulas and step-by-step. Please answer fast i give you upvote.
Consider the following two assets: Asset Expected return Standard deviation of returns 1 18% 30% 2 8% 10% The returns on the two assets are perfectly negatively correlated (i.e. coefficient of -1). Calculate the proportions of assets 1 and 2 that generate a portfolio with a standard deviation of zero. What is the expected return of that portfolio Calculate the expected returns and standard deviations of three other portfolios with weightingsof your choice. Present a graph of your results.
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