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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(a) XVW Ltd. currently holds a portfolio containing two assets; Asset 1 and Asset 2. If Er1 = 0.25, Er2 = 0.36, Er12 = 0.1, Er2 2 = 0.15 and Er1r2 = 0.125, where ri represents the return in asset i. Determine the optimal proportions in which each asset should be held if the company would like to minimize the variance of their portfolio %3D
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.
three assets. The first one has expected return of 10% and standard deviation of return of 0.14. The second has expected retur 20% and standard deviation of return of 0.2. The third asset has expected returnn of 15%. (a) determine the range of the standard deviation of the third asset so that non of the asset dominates another. (b)This range is an interval with a lower bound a and an upper bound . What equals the lower bound a of the interval?
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?
Suppose that Mr Plutus has been asked to choose between various pairs of strategies and he responds as follows: Choose between: Response B and D В A and D C and D D B and E indifferent A and C A D and E Е. Assuming that Mr Plutus' preferences satisfy the four von Neumann-Morgenstern axioms, how does Mr Plutus rank the five instruments A,B,C,D and E? Select one: E = B > D > C > A а. || O b. E = B > A > D > C Ос. B = E > D > C > A O d. E = B > D > A > C %3D
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…

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