In CAPM and your CAPM Project, the beta of AAPL was computed by regressing the returns of whatY=on what X=Y=S&P500 on X=AAPL?Y=AAPL on X=Risk free rateY=AAPL minus the Risk free rate on X=AAPL minus S&Pnone of the above

First let us define beta in regression analysis. Beta is the slope of the regression line. It is the…

In CAPM and your CAPM Project, the beta of AAPL was computed by regressing the returns of what on what X= Y= Y=S&P500 on X=AAPL ? Y=AAPL on X=Risk free rate Y=AAPL minus the Risk free rate none of the above on X=AAPL minus S&P

In CAPM and your CAPM Project, the beta of AAPL was computed by regressing the returns of what on what X= Y= Y=S&P500 on X=AAPL ? Y=AAPL on X=Risk free rate Y=AAPL minus the Risk free rate none of the above on X=AAPL minus S&P

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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Under the stop-loss reinsurance model, suppose the total claim follows exponential distribution with mean 1/λ. For given premium P, (a) Derive the retention level M; (b) Calculate the sum of shared variances Var(X*) + Var.X
Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, r, is 18.7%; and that the coefficient of variation, CV, is 1.88, answer the following questions: a. Find the standard deviation of returns, sigma Subscript rσr. b. Calculate the range of expected return outcomes associated with the following probabilities of occurrence: (1) 68%, (2) 95%, (3) 99%.
The Monte Carlo approach is known for: Group of answer choices C. Histogram of portfolio values. No answer text provided. A. Being nonparametric (No need to worry about setting parameters). B. Repeated simulations.
I need typing clear full answers pls i will give 5 upvotes
Suppose two asset returns are described by a two factor model, n = 0% + 11 + 1.82 + e1 2 = -1% + 2/1 + 0.52 + e2 where the volatility of first factor is 30%, the volatility of the second factor is 10%, and the correlation between the two factors is 0.5. Suppose also that the volatilities of the error terms ej and ez are both 10%. What is the covariance of n and r2 ? (Nearest 0.0001).
3. A market consists of two risky assets and no risk-free asset. Let R₁ and R₂ denote the return on each of the risky assets. Using market data the following have been estimated: E[R₁] = 0.10, E[R₂] = 0.15, o² = Var(R₁) = 0.1², o² = Var(R₂) = 0.2² and p1,2 = -1/2 where P1,2 denotes the correlation coefficient for R₁ and R₂. (i) Given that an investor is targeting a total expected return of portfolio, what is the minimum variance that can be achieved? = 0.125 on a (ii) Determine the global minimum variance portfolio and the expected return and variance of return on this portfolio. (iii) Using your answers to parts (i) and (ii) make a rough sketch of the minimum- variance set in - o2 space. You should indicate the efficient frontier and the global minimum variance portfolio. (iv) Without further calculation, explain how you would expect the variance of return calculated in (ii) to change if the two risky assets were independent.
What is the test statistics and critical values. I got 4.20 for the test statistic, but it says its incorrect.
No chatgpt used i will give 5 upvotes typing please i need both answers
A diagram of the CML and SML for the market M, risk-free asset ry, an inefficient portfolio P, and a complete portfolio C is shown below. The diagram is not to scale. E(r) E(13) CML & CALP E(12) P C E(r) M 01 02 03 P βρ SML M Вм The values of the labeled variables are E[1] = 3.0%, E[12] = 10.3%, E[3] = 16.7%, σ₁ = 17.9%, σ = 30.0%, 03 = 44.3%. What is the standard deviation of nonsystematic risk for the complete portfolio σc under the CAPM? O a. 0.1374 O b. 0.1180 O c. 0.0988 d. 0.1105 O e. 0.0791 O f. 0.0913 Og. 0.0858 O h. 0.1443
True or false? Beta of MSFT is 0.7 and beta of RCL is 1.33. One can conclude that unsystematic risk of RCL is higher than unsystematic risk of MSFT.
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
1. Please, compute mean returns, variances and covariance among the two assets of the IBEX35 and present the vector of returns and the matrix.

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