Over a particular period, an asset had an average return of 12.1 percent and a standard deviation of 20.5 percent. What range of returns would you expect to see 68 percent of the time for this asset? Note: A negative answer should be Indicated by a minus sign. Input your answers from lowest to highest to receive c answers. Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e Expected range of returns % to 96 What about 95 percent of the time? Note: A negative answer should be Indicated by a minus sign. Input your answers from lowest to highest to receive cr answers. Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.

Over a particular period, an asset had an average return of 12.1 percent and a standard deviation of 20.5 percent. What range of returns would you expect to see 68 percent of the time for this asset? Note: A negative answer should be Indicated by a minus sign. Input your answers from lowest to highest to receive c answers. Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e Expected range of returns % to 96 What about 95 percent of the time? Note: A negative answer should be Indicated by a minus sign. Input your answers from lowest to highest to receive cr answers. Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, 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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Consider the following POPULATION of returns: 5%, -4%, -3%, and 12%. What is the standard deviation of this population of returns? O A. 0.42% O B. 0.56% OC. 6.50% O D. 7.51%
Comment on the SAS regression output including a-e. Compare and comment on the differences between the two regressions (3- vs. 4-factor model using either OLS or HC results depending upon the White test result) Make conclusions regarding choosing 3- vs. 4-factor model when predicting future stock returns, and explain why.
An asset has an average return of 10.73 percent and a standard deviation of 20.70 percent. What range of returns should you expect to see with a 95 percent probability? Multiple Choice −9.97% to 31.43% −51.37% to 72.83% −30.67% to 52.13% −20.32% to 41.78% −9.97% to 11.49%
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%.
This is a three-part question. Answer to part one is 2.4%; please help me solve for parts two and three. Thank you.
Asset W has an expected return of 12.6 percent and a beta of 1.25. If the risk-free rate is 4.6 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your expected returns as a percent rounded to 2 decimal places, e.g., 32.16, and your beta answers to 3 decimal places, e.g., 32.161.) Percentage of Portfolio in Asset W 0% 25 50 75 100 125 150 - Slope of the line Portfolio Expected Return % % % % % % % If you plot the relationship between portfolio expected return and portfolio beta, what is the slope of the line that results? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Portfolio Beta %
Over a particular period, an asset had an average return of 5.2 percent and a standard deviation of 8.5 percent. What range of returns would you expect to see 95 percent of the time for this asset?
Calculate the standard deviation of the following returns. Year Return 1 0.01 2 0.27 3 0.02 4 0.02 5 0.22 Enter the answer with 4 decimals, e.g. 0.1234.
Use the data shown in the following table: K a. Compute the average return for each of the assets from 1929 to 1940 (the Great Depression). b. Compute the variance and standard deviation for each of the assets from 1929 to 1940. c. Which asset was the riskiest during the Great Depression? How does that fit with your intuition? Note: For all your answers type decimal equivalents. Data table Year 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 S&P 500 -0.08906 -0.25256 - 0.43861 -0.08854 0.52880 -0.02341 0.47221 0.32796 -0.35258 0.33204 -0.00914 - 0.10078 Small Stocks - 0.43081 -0.44698 -0.54676 -0.00471 2.16138 0.57195 0.69112 0.70023 - 0.56131 0.08928 0.04327 -0.28063 Corp. Bonds 0.04320 0.06343 -0.02380 0.12199 0.05255 0.09728 0.06860 0.06219 0.02546 0.04357 0.04247 0.04512 World Portfolio -0.07692 -0.22574 -0.39305 0.03030 0.66449 0.02552 0.22782 0.19283 -0.16950 0.05614 -0.01441 0.03528 Treasury Bills 0.04471 0.02266 0.01153 0.00882 0.00516 0.00265 0.00171 0.00173…
questions to be answered
Which of the following assets dominates Asset X that has 9% expected return andstandard deviation of 11% according to the mean-variance criterion? Asset V: 9.4% expected return, 10% standard deviation Asset R: 8.5% expected return, 7% standard deviation Risk-free asset: 3% expected return, 0% standard deviation Asset S: 11.2% expected return, 14% standard deviation
An asset has an average return of 11.33 percent and a standard deviation of 24.18 percent. What is the most you should expect to lose in any given year with a probability of 2.5 percent? −37.03% −61.21% −24.94% −12.85% −59.69%

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