Question 5 1 pts Consider the following returns: Stock X Stock Z Year End Stock Y Realized Return Realized Return Realized Return 2004 0.2% 20.1% -14.6% 2005 72.7% -3.2% 4.3% 2006 -27.0% -25.7% -58.1% 2007 56.9% 27.9% 71.1% -5.1% 2008 17.3% 6.7% 2009 -11.3% 17.9% 0.9% The variance on a portfolio that is made up of equal investments in Stock X and Stock Z is closest to: 0.62 0.05 0.12 0.06

Q: Which Variable Is most critical in Sensitivity Analysis?

A: Sensitivity analysis helps to analyze the project by considering different variables. It helps…

Q: Find the variance &Standard deveation of the portfolio

A: Excel Spreadsheet:

Q: What is the expected return on a two asset portfolio and what are its variance and standard…

A: Two Asset portfolio: The portfolio that has 2 assets is called as two asset portfolio.

Q: What is the expected return? What is the variance? What is the standard deviation?

A: State Probability Returns       Boom 0.25 0.15 Normal 0.50 0.08 Slow down 0.15 0.04…

Q: What are the different variables in sensitivity analysis?

A: Answer: Under a given set of expectations, a sensitivity analysis describes the way different values…

Q: Which one of the following measures is relevant for assessing exposure to systematic risk?

A: Systematic Risk: It refers to the risk caused by factors that are not in the control of an…

Q: Which cell or column is used for the covariance?

A: Here, Probability Stock Fund Rate of Return A B 0.1 -34% 0.2 -20% 0.3 21% 0.4 36%…

Q: The efficient frontier measures risk by using: Group of answer choices B. Correlation A. Risk-free…

A: Efficient frontier refers to the graphical representation of the set of optimal portfolios…

Q: Calculate the following and determine if variances are favorable

A: Compute the total standard material cost.

Q: How do you calculate a weighted beta?

A: In portfolio there are number of stock present in portfolio. We have to calculate weight of each…

Q: Explain what is meant by and the limits of mean variance analysis when it comes to investment…

A: Mean-Variance Analysis is an investment decision tool technique that is used by investors to make…

Q: I can use the regression beta as my estimate of beta in a valuation. True or false

A: Beta refers to the measurement of the volatility of stock related to the market as a whole. When…

Q: Explain the difference between a linear risk and a nonlinear risk.

A: Linear risk is an enterprise's risk, based on the traditional economic system of "take-up-dispose."…

Q: Which of the following are measurements of risk? range coefficient of variation mean average…

A: The measurements of risk are range, coefficient of variation, standard deviation, and median.…