The calculation of a portfolio's beta is similar to the calculation of Blank______. Multiple choice question. a portfolio's variance a portfolio's standard deviation the value of a put option a portfolio's expected return
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The calculation of a portfolio's beta is similar to the calculation of Blank______.
a portfolio's variance
a portfolio's standard deviation
the value of a put option
a portfolio's expected return
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- Mean returns for portfolios are calculated by taking the weighted average of the mean returns for each investment in the portfolio. Why won’t this approach work calculate the standard deviation of portfolio returns?The expected return of a portfolio is simply the weighted average of the expected returns for the individual assets within the portfolio. Group of answer choices True FalseWhich of the following measures the total risk of a portfolio? A. Standard Deviation B. Correlation Coefficient C. Beta D. Alpha
- The beta of an investment measures the probability weighted expected rate of return of a portfolio. True FalsePortfolios that offer the highest expected return for a given variance (or standard deviation) are known as efficient portfolios. O true falseExpected retun and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What is the variance and the standard deviation c. What is the expected return of a portfolio with 1 1 Data Table d. What is the portfolio's variance and standard de - X Hint Make sure to round all intermediate calculatio Swers yo (Click on the following icon D in order to copy its contents into a spreadsheet.) a. What is the expected return of asset J? (Round to four decimal places.) Return on Return on Return on Probability of State State of Asset J in Asset Kin State 0.200 0.140 0.040 Asset L in Economy State State Вoom 0.28 0.070 0.260 0.180 Growth 0.37 0.25 0.070 Stagnant 0.070 0.060 -0.210 Recession 0.10 0.070 -0.100 Print Done
- What is the expected return on a two asset portfolio and what are its variance and standard deviation? Also, What is R squared?Consider two assets. Suppose that the return on asset 1 has expected value 0.05 and standard deviation 0.1 and suppose that the return on asset 2 has expected value 0.02 and standard deviation 0.05. Suppose that the asset returns have correlation 0.4.Consider a portfolio placing weight w on asset 1 and weight 1-w on asset 2; let Rp denote the return on the portfolio. Find the mean and variance of Rp as a function of w.The risk premium on the market portfolio will be proportional to _____________ I. the average degree of risk aversion of the investor population. II. the risk of the market portfolio as measured by its variance. III. the risk of the market portfolio as measured by its beta. Group of answer choices a. I only b. II only c. III only d. I and II e. I and III
- The market and Stock J have the following probability distributions: a. Calculate the expected rates of return for the market and Stock J. b. Calculate the standard deviations for the market and Stock J.Briefly explain what the Beta of a stock means. What values can it take and what do these imply? Explain how the beta of a stock is different from the variance as a measure of risk.The standard deviation of a stock’s return is a measure of its? Multiple Choice systematic risk correlation expected future return total risk
