Incorrect Question 16 0 / 1 pts Best Invest seeks to allocate $10,000 between three funds A, B, and C. Best Invest's goal is to achieve an expected portfolio return of 10% at the lowest possible risk level. Best Invest has ten quarters of annualized performance data on the three funds that are shown below and provided in the Excel workbook for this quiz. Quarter Fund A Fund B Fund C 1 9.90% 5.00% 8.70% 2 8.90% 7.70% 20.50% 3 10.10% 5.10% 36.40% 4 2.00% 17.00% -13.30% 5 3.00% 5.90% 11.40% 6 7.10% 11.50% -9.00% 7 5.30% 18.00% 5.20% 8 10.40% 12.50% 47.20% 9 10.50% 19.00% -3.40% 10 6.80% 12.50% 17.60% Which of the following statements are true regarding funds A, B, and C? (Note: Round answers to two significant digits except for covariance values which are rounded to 5 significant digits.) The 10-quarter average performance for fund A is 7.40%. The 10-quarter standard deviation in performance for fund B is 5.37%. The 10-quarter covariance in performance between funds A and C is 0.00316 The 10-quarter correlation in performance between funds B and C is 0.45 Exactly two answers are correct. Exactly three answers are correct.
Incorrect Question 16 0 / 1 pts Best Invest seeks to allocate $10,000 between three funds A, B, and C. Best Invest's goal is to achieve an expected portfolio return of 10% at the lowest possible risk level. Best Invest has ten quarters of annualized performance data on the three funds that are shown below and provided in the Excel workbook for this quiz. Quarter Fund A Fund B Fund C 1 9.90% 5.00% 8.70% 2 8.90% 7.70% 20.50% 3 10.10% 5.10% 36.40% 4 2.00% 17.00% -13.30% 5 3.00% 5.90% 11.40% 6 7.10% 11.50% -9.00% 7 5.30% 18.00% 5.20% 8 10.40% 12.50% 47.20% 9 10.50% 19.00% -3.40% 10 6.80% 12.50% 17.60% Which of the following statements are true regarding funds A, B, and C? (Note: Round answers to two significant digits except for covariance values which are rounded to 5 significant digits.) The 10-quarter average performance for fund A is 7.40%. The 10-quarter standard deviation in performance for fund B is 5.37%. The 10-quarter covariance in performance between funds A and C is 0.00316 The 10-quarter correlation in performance between funds B and C is 0.45 Exactly two answers are correct. Exactly three answers are correct.
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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Question 16
0 / 1 pts
Best Invest seeks to allocate $10,000 between three funds A, B, and
C. Best Invest's goal is to achieve an expected portfolio return of
10% at the lowest possible risk level. Best Invest has ten quarters of
annualized performance data on the three funds that are shown
below and provided in the Excel workbook for this quiz.
Quarter
Fund A
Fund B
Fund C
1
9.90%
5.00%
8.70%
2
8.90%
7.70%
20.50%
3
10.10%
5.10%
36.40%
4
2.00%
17.00%
-13.30%
5
3.00%
5.90%
11.40%
6
7.10%
11.50%
-9.00%
7
5.30%
18.00%
5.20%
8
10.40%
12.50%
47.20%
9
10.50%
19.00%
-3.40%
10
6.80%
12.50%
17.60%
Which of the following statements are true regarding funds A, B, and
C?
(Note: Round answers to two significant digits except for covariance
values which are rounded to 5 significant digits.)
The 10-quarter average performance for fund A is 7.40%.
The 10-quarter standard deviation in performance for fund B is
5.37%.
The 10-quarter covariance in performance between funds A and C is
0.00316
The 10-quarter correlation in performance between funds B and C is
0.45
Exactly two answers are correct.
Exactly three answers are correct.
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