State Probability 0.10 0.20 0.20 0.30 0.20 L23 45 Return on Stock A Multiple Choice 10% 13% 12% 14% 15% Return on Stock B 8% 7% 6% 9% 8% Which of the following portfolio(s) is(are) on the efficient frontier? The portfolio with 15 percent in A and 85 percent in B. The portfolio with 26 percent in A and 74 percent in The portfolio with 10 percent in A and 90 percent in B. The portfolio with 20 percent in A and 80 percent in B.

State Probability 0.10 0.20 0.20 0.30 0.20 L23 45 Return on Stock A Multiple Choice 10% 13% 12% 14% 15% Return on Stock B 8% 7% 6% 9% 8% Which of the following portfolio(s) is(are) on the efficient frontier? The portfolio with 15 percent in A and 85 percent in B. The portfolio with 26 percent in A and 74 percent in The portfolio with 10 percent in A and 90 percent in B. The portfolio with 20 percent in A and 80 percent in B.

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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Portfolio Expected return Standard deviation Q 7.8% 10.5% R 10.0% 14.0% S 4.6% 5.0% T 11.7% 18.5% U 6.2% 7.5% (Q1) For each portfolio, calculate the risk premium per unit of risk (Sharpe ratio) that you expect to receive. Assume that the risk-free rate is 3.0%. (Q2) Using answers from Q1, which of these five portfolios is most likely to be the market portfolio and explain why. (200 words maximum)
Need help on parts 2-7 please.
Choose which portfolio is the optimal risk-return relationship if your client's return preference is greater than 0.405%. stock 1 MRNA MRNA MRNA MRNA MRNA stock 2 SBUX V FLATX BND SP500 0.422% 0.414% 0.347% 0.403% 0.419% return, 0.133% o 0.134% 0.136% 0.131% 0.123% 3.661% 3.686% 3.615% 3.514% 3.652% Op MRNA, SP500 MRNA, FLATX O MRNA, BND MRNA, V
Accounting Use the following information: Stock A B Good state 12% 17% Bad state 0% -1% Assume there is 60% probability that the good state occurs and 40% chance the bad state occurs. What is the expected return of a portfolio that is 9% invested in stock A and 1-9% invested in B? (Please use 5 decimal places, this should be written in percentage return, so an answer of 23.143% should be written at .23143)
4.3% 3.38 LON LIN 2.ON Portfolio Opportunity Set ADN Min Risk ORP KOOS GOOG AMIN D. All portfolios from "Min.Risk" to "ORP" E. All portfolios from "Min. Risk" to AMZN 10.00% COON St Dav 6. On the graph above, which portfolio(s) would be considered to be efficient? A. Only portfolio AMZN B. Only portfolio ORP C. All portfolios from ORP to AMZN SEAN
What is the standard deviation of a portfolio formed of shares A and B? Asset (A) E(R₂) = 9% SDA = 4% W₁ = 0.4 Select one: A. 4.99% B. 4.56% C. 3.68% D. 5.16 Asset (B) E(R₂) = 11% SDB = 6% WB = 0.6 COVA, B = 0.0011
Question 3 A portfolio consisting of 5 securities could have its beta factor computed Security % of portfolio Beta factor of A B с D E 20 10 15 20 35 security 0.90 1.25 1.10 1.15 0.70 as follows: Weighted beta factor 0.180 0.125 0.165 0.230 0.245 If the risk-free rate of return is 12% and the expected return on the market is 20%. Determine the expected return of this portfolio.
Please answer fast I will rate for you sure....
Baghiben
Tiempo restante U:28:23 What is the beta of a portfolio that has $18,400 in Stock M, $6,320 in Stock N, $32,900 in Stock O and $11,850 in Stock P. Their Betas are .97, 1.04, 1.23, and .88, respectivley? O a. 1.04 O b. 1.11 О с. 1.08 O d. 1.15 O e. .99
Portfolio Expected return Standard deviation Q 7.8% 10.5% R 10.0% 14.0% S 4.6% 5.0% T 11.7% 18.5% U 6.2% 7.5% What is the minimum level of risk that would be necessary for an investment to earn 7.0%? What is the composition of the portfolio along the Capital Market Line (CML) that will generate that expected return? Rf= 3%
Stock A Stock B 1 0.09 0.06 2 0.05 0.01 3 0.15 0.05 4 5 -0.04 0.08 0.01 -0.04 a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.44, what is the expected return and standard deviation of a portfolio of 59% stock A and 41% stock B?

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