Over the past 3 years an investment returned 0.15, -0.1, and 0.05. What is the variance of returns?

Q: In a regression of the single-index model, the R-square is 68%, residual variance is 0.08, beta…

A: R square = 68% = 0.68 residual variance (σe^2)= 0.08 Beta (B) = 0.7 Let σm^2 = Market variance

Q: Use the following information to answer the questions.       State of   Economy Probability of State…

A: Given : State of Economy Probability Return on Asset D Return on Asset E Return on Asset F Boom…

Q: Expected accumulated value for investment A: Expected accumulated value for investment B: Investment…

A: The expected return is a concept in finance that represents the anticipated gain or loss on an…

Q: Use the means and standard deviations of return for MSFT and TSLA in percent per month that are…

A: Opportunity set is the set of all possible portfolios that an investor may construct from a given…

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: 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 total variance of the following portfolio including 2 assets invested in the ratio of…

A: Formula to be used: Portfolio variance=(WA2 x σ2A)+(WB2 x σ2B)+ (2 x WA x σA x WB x σB x r) Data…

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

A:

Q: Consider the following variance-covariance matrix for Security A, Security B, and the Market:…

A: The level of yield that an investor judges to receive from an investment given the level of risk,…

Q: R

A: Formula for expected return: E(r) = R1P1 + R2P2...........RnPn Variance = p1[R1 - E(r))^2…

Q: Which of the following is (are) correct regarding average returns? A B The geometric mean is a…

A: In finance the geometric average return is a way to figure out the rate of return, on an investment…

Q: Calculate volatility and lower partial moment using the data below. ( , ) Target return is 0% Rate…

A: No. Return Return - mean 6.95 (return - mean)2 1 8.3 1.35 1.82 2 6.8 -0.15 0.02 3 -2.4 -9.35…

Q: An investor experiences the following 5 annual returns. Calculate the sample variance of these…

A: 5 Annual Returns are providedWe are required to Calculate Sample Variancen= frequency = 5

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: 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: Last year, your investment in large-company stocks earned an average of 6 percent while T-bills…

A: The correct answer to the question is "Risk premium".According to the Capital Asset Pricing Model…

Q: C). Your investment in A Limited earned the following returns for the years 1996 to 1999: 30%, 40%,…

A: Year Return 1996 30% 1997 40% 1998 15% 1999 7%

Q: Use the following returns for X and Y. Year PA234S 1 5 Returns X 21.6% -16.6 9.6 19.2 4.6 Y 25.8%…

A: The standard deviation measures the level of risk associated with stock, whereas the average return…

Q: Emmons Corporation has a 0.0 probability of a return of 0.49, a 0.4  probability of a rate of return…

A: Expected Return is computed asRemaining probability = 1- (0.0 + 0.4) = 0.6Expected Return = (0.0 *…

Q: What is the Variance of returns for Security XYZ? (no rounding off until the final answer, final…

A: Information OUTCOME PROBABILITY EXPECTED RETURN A 20% 20% B 80% 25%

Q: 2. Given the following historical returns, calculate the average return and the standard deviation:…

A: standard deviation = square root of (sum of (Return-average)^2)

Q: Returns             Year   X     y   1   17  %   20  % 2   20     32   3   11     15   4 – 7   – 18…

A: arithmetic average =sum of return/5 Arithmetic average =17+20+11-7+10/5=51/5=10.2 Arithmetic average…

Q: Over the past 3 years an investment returned 0.19, -0.11, and 0.07. What is the variance of returns?

A: Variance: Variance is the measure of dispersion of returns of an investment.

Q: If you want to have 14,000 at the end of year 5, how much should you have to save each year if the…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Suppose the returns on an asset are normally distributed. The historical average annual return for…

A: Variables in the question:Average annual return for the asset=5.2%Standard deviation=10.6%

Q: Expected Return, Variance, Std. Deviation and Cofficient of Variation: Magee Inc.'s manager believes…

A: The standard deviation of the stock is the measure of the deviation of the stock's return from the…

Q: What is the coefficient of variation (CV) of an asset with expected return 5% and standard deviation…

A: The coefficient of variation is used by investors in determining how much risk or volatility is…

Q: If you have a weighted value of 12.8% and a return of 16% what is the probability? a. 10% 129/

A: Given: Weight = 12.8% Return = 16%

Q: The measures of risk include Geometric Mean Arithmetic Mean Median Variance

A: The risk is very important in the stock market and we must quantify the risk so that it can be…

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: What is the variance of returns

A: Return means additional benefit received over the invested amount for the period. Every investment…

Q: Over the past 3 years an investment returned 0.19, -0.08, and 0.07. What is the variance of returns?

A: In the given case, the investment returns of the past 3 years are given. So, number of years is…

Q: Over the past 3 years an investment returned 0.16, -0.11, and 0.08. What is the variance of returns?

A: In the given case, the investment returned of the past 3 years are given . So, number of years is 3.…

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: 16. What is the total variance of the following portfolio including 2 assets invested in the ratio…

A: Formula to be used: Portfolio variance=(WA2 x σ2A)+(WB2 x σ2B)+ (2 x WA x σA x WB x σB x r) Data…

Q: Expected Return, Variance, Std. Deviation and Cofficient of Variation: Magee Inc.'s manager…

A: Formulas:

Q: Given Portfolio 1 Expected Return= 0.15 Portfolio variance = 0.001 Standard Deviation = 0.0316…

A: A portfolio is the combination of various financial assets into one basket with the aim to earn…

Q: Which one of the following best describes an arithmetic average return?

A: Arithmetic average return is the mean of all returns and hence is computed by adding all the returns…

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: The expected annual returns are 15% for investment 1 and 12% for investment 2. The standard…

A: Here, Expected Annual Return of Investment 1 is 15% Expected Annual Return of Investment 2 is 12%…

Q: Assume that we have three assets.  The first one has expected return μ1 = 10% and standard…

A: Standard deviation of an asset denotes the variability in return of the asset. Higher will be the…

Q: The expected annual returns are 15% for investment 1 and 12% for investment 2. The standard…

A: An investor would always analyze the risk and return of all available investment options before…

Q: What is the average annual return? b. What is the variance of the stock's returns? c. What is the…

A: Standard deviation refers to the measurement of the dispersion of data from its mean value which…

Q: The balance sheet for Shankland Corporation follows: 000 009 $ 000 '006 Current assets Long-term…

A: Working capital = current assets - current liabilities