orrelated assets have the same expected return of 10% per year and the same standard deviation of 30% per year. What is the standard deviation of a portfolio that is equally weighted in these two

Q: Coca Cola - 25.51% Pfizer - 14% CVS - 32.99% Berkshire Hathaway - 29.66%

A: In this question we will be creating portfolio with different weights of each asset to maximize the…

Q: The standard deviation of the returns of a portfolio is the geometric average of the standard…

A: Portfolio standard deviation measures the fluctuations in a portfolio how volatile a portfolio is…

Q: A portfolio combines two assets: X and Y. The proportion of Asset X in the portfolio is 25%, and the…

A: A portfolio refers to investments in two or more than two financial securities or assets. For…

Q: Multiple Choice O O O -24.34% -12.61% -59.53% -36.07%

A: Mean return=10.85%Standard deviation=23.46%Find out maximum loss for 2.5% probability.

Q: B 15.5% 20.2%

A: The coefficient of variation can be computed as follows :

Q: Assume that there is a positive linear correlation between the variable R (return rate in percent of…

A: Positive linear correlation:- It is the relationship between two variables where an increase in the…

Q: What is the standard deviation of an efficient portfolio with a 21.4-percent expected rate of…

A: ERP : 21.4%R(f): 6.4%ERM: 9.4%σM: 25.4%

Q: Consider an investment for which the expected returns are normally distributed with an expected…

A:

Q: Given there are two assets making up a portfolio where each asset has the following characteristics:…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: You plan to put 50% of your wealth into each assets. What would the expected return be for the…

A: Expected return on a portfolio is the rate of return that is required to generate from the…

Q: Problem 1 Suppose it is the start of year 2008. You have $100,000 to invest and decide to invest in…

A: The solution requires understanding of optimal portfolio theory. It also requires use of excel…

Q: How do I calculate portfolio return and risk for an equally weighted portfolio using expected…

A: The portfolio return is defined as the gain/loss that is realized through an investment portfolio,…

Q: Marcus has an investment portfolio that paid the rate of return of 24.75%, -11%, - 30%, 19%, 15.5%,…

A: Arithmetic average is sum of all divided by number of return. Geometric return can be calculated by…

Q: Consider two assets, A and B. A earns +4%, -5%, or +3%, in scenarios 1, 2, and 3. B earns -5%, +3%,…

A: The calculations for the expected rates of return and standard deviations for each asset, and the…

Q: An asset has an average return of 11.03 percent and a standard deviation of 21.10 percent. What…

A: Average return = 11.03%Standard deviation = 21.10%Probability = 95%,Z score equivalent to 95%…

Q: You are constructing a portfolio of two assets. Asset A has an expected return of 12 percent and a…

A: Sir If you got the answer, please give a helpful rate. Thank you

Q: An investor has an investment that has produced the following returns: Year 1: 10%, Year 2: 5%, Year…

A: Arthmetic mean is rate of return that is calculated by summing up all returns and dividing by the…

Q: Consider a portfolio formed of two risky assets whose returns have a correlation of 0.5. What can be…

A: Risky assets are investment instruments that come with a certain degree of uncertainity regarding…

Q: Suppose an investment is equally likely to have a 24% retu - 8% return, or a 6% return. The expected…

A: r1=24%r2=-8%r3=6%All equal likely

Q: Suppose you invest 3/4 of your funds in security A and 1/4 in B. Mean returns for A and B are 16%…

A: Standard Deviation is the measure of variation from the random variations from the return.

Q: You will have a portfolio that is only comprised of two assets. You plan to allocate 47.1% into…

A: Expected return on a portfolio refers to the anticipated gain or loss that an investor can expect…

Q: Suppose the asset S offers 12% expected return with 14% standard deviation per year, while the asset…

A: Diversification is a concept devised in risk management that helps limit the exposure of the…

Q: You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the…

A: To address this question initially, we must calculate the weight of each asset using the following…

Q: Security F has an expected return of 10 percent and a standard deviation of 43 percent per year.…

A: The expected return of the company is the return of security adjusted with the volatility with…

Q: n asset has an average return of 11.51 percent and a standard deviation of 24.45 percent. What is…

A: Investment in the stock market is subjected to risk and there are many possible outcomes and chance…

Q: You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the…

A: The obtained results are provided below after taking into consideration of step 2

Q: An asset has an average return of 11.45 percent and a standard deviation of 24.36 percent. What is…

A: In order to make well-informed judgments concerning risk and return, investors frequently analyze…

Q: An investor wants to design a complete portfolio with an expected rate of return of 15% from two…

A: Portfolio return, risk and the optimal portfolio: The portfolio return is the sum of the products of…

Q: Asset 1 has a standard deviation of 0.10 and an expected return of 7%. Asset 2 has a standard…

A: Standard deviation of Asset 1 (sd1) = 0.10Expected return of Asset 1 (Er1) = 7%Standard deviation of…

Q: The expected return for Asset Y is 24%, and it has a standard deviation of 14%. The expected return…

A: Standard deviation is one of the measure of risk. Less the standard deviation , less risky the asset…

Q: Using single-period arithmetic returns, calculate the value after two periods for the realized…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: Two investments generated the following annual returns: a. What is the average annual return on each…

A: Annual return The return an investor receives from an investment within one fiscal year is called…

Q: A portfolio combines two assets: X and Y. The proportion of Asset X in the portfolio is 35%, and the…

A: A portfolio consists of two or more financial securities. The financial securities in a portfolio…

Q: Determine, using Capital Assets Pricing Model (CAPM), the Fxpected Rate of Return Asset A : return:…

A: In this question we need to compute the expected return of asset A as per CAPM:

Q: Consider two assets A and B with expected return as 9% and 5%, respectively. Standard deviation of…

A: The expected return of Portfolio is calculated with the help of following formula  Er(p) = Er (A) ×…

Q: ired Year 0 1 2 3 4 5 Return Alpha Sum Tracking Error Information Ratio Note: the numbers in red are…

A: Information ratio is calculated as shown below.

Q: You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the…

A: To solve this question first, we need to compute weight of each asset by using the following…

Q: uppose the average return on Asset A is 6.6 percent and the standard deviation is 8.6 percent and…

A: Probability is the chance that a particular event will occur and that depends on the z-score.

Q: Asset A has a standard deviation of 0.17, and asset B has a standard deviation of 0.52. Assets A and…

A: It is a case where the portfolio consists of three assets. The two assets are risky assets and the…

Q: This question requires you to consider a three-asset portfolio valued at 10 million AUD. The…

A: Step 1:To address the question related to the three asset portfolio,we will need to go through a few…

Q: uppose the average return on Asset A is 7.1 percent and the standard deviation is 8.3 percent, and…

A: a. For Asset A:The probability that the return will be greater than 12 percent in any given year is…