The rates of return on Cherry Jalopies, Inc., stock over the last five years were 23 percent, 11 percent, -5 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 24 percent, -6 percent, 2 percent, and 16 percent. Calculate the variances and the standard deviations for Cherry and Straw. (Do not round intermediate calculations. Enter your variance as a decimal rounded to 5 decimal places. Enter your standard deviation as a percent rounded to 2 decimal places.) Variance Standard deviation Answer is complete but not entirely correct. Cherry 83.72000x 9.15% Straw 117.80000 x 10.85 %

The rates of return on Cherry Jalopies, Inc., stock over the last five years were 23 percent, 11 percent, -5 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 24 percent, -6 percent, 2 percent, and 16 percent. Calculate the variances and the standard deviations for Cherry and Straw. (Do not round intermediate calculations. Enter your variance as a decimal rounded to 5 decimal places. Enter your standard deviation as a percent rounded to 2 decimal places.) Variance Standard deviation Answer is complete but not entirely correct. Cherry 83.72000x 9.15% Straw 117.80000 x 10.85 %

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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Your portfolio invests in the stock of two companies. Company A’s stock has a variance of 0.25, while Company B’s stock has a standard deviation of 0.30. The correlation between the two stocks is 0.40. If 30% of your portfolio is invested in Company A, and 70% in Company B, what is the standard deviation of your portfolio? A. 28.74% B. 24.96% C. 30.30% D. 28.50%
The stock of Bruin, Incorporated, has an expected return of 19 percent and a standard deviation of 34 percent. The stock of Wildcat Company has an expected return of 14 percent and a standard deviation of 49 percent. The correlation between the two stocks is 0.40. Calculate the expected return and standard deviation of the minimum variance portfolio. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Expected retur Standard deviation 67.00 % %
The expected rate of return for the stock of Cornhusker Enterprises is 15 percent, with a standard deviation of 5 percent. The expected rate of return for the stock of Mustang Associates is 10 percent, with a standard deviation of 2 percen a. Which stock would you consider to be riskier? Round your answers to two decimal places. The coefficient of variation of returns for Cornhusker's stock: The coefficient of variation of returns for Mustang's stock: ✓is riskier. -Select- b. If you knew that the beta coefficient of Cornhusker stock is 0.9 and the beta of Mustang is 0.6, how would your answer to Part a change? Looking only at systematic risk -Select- ✓is riskier.
Am. 157.
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Nikulbhai
The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 2.00 and a residual standard deviation of 30%. Calculate the total variance for an increase of 0.10 in its beta. A. Total variance will increase from 2,500 to 2,664. B. Total variance will increase from 2,500 to 2,774. C. Total variance will increase from 2,600 to 2,664. D. Total variance will increase from 2,600 to 2,774.
The rates of return on Cherry Jalopies, Incorporated, stock over the last five years were 18 percent, 11 percent, -2 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 21 percent, -2 percent, 4 percent, and 13 percent. Calculate the variances and the standard deviations for Cherry and Straw. Note: Do not round intermediate calculations. Enter your variance as a decimal rounded to 5 decimal places. Enter your standard deviation as a percent rounded to 2 decimal places.
Over the past five years, a stock returned -2.73 percent, 14.66 percent, 15.19 percent, 3.43 percent, and 5.49 percent, respectively. What is the variance (as a decimal fraction) of these returns? Carry intermediate calculations to six decimals. Answer to four decimals. Your answer should look something like 0.0123, or 0.0024.
There are only shares of A and B companies in the market. Currently, the market value of A and B shares is $200 million and $300 million, respectively. In addition, the risk-free interest rate (Rf) is 5 per cent. The probability and rate of return for the future state of the two entities are given as follows: (Value values with a decimal place or higher to the fifth decimal place.) 1) Obtain the expected return and variance of Entity A and B, respectively. 2) When forming a market portfolio with two shares, obtain the expected return rate and variance and standard deviation of the market portfolio. 3) Calculate the beta of share A, and calculate the required yield of share A. state probability Ra Rb 1 0.3 0.30 0.20 2 0.4 0.15 -0.10 3 0.3 0.05 0.10
The table below shows standard deviations and correlation coefficients for seven stocks from different countries. Calculate the variance of a portfolio with equal investments in each stock. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Round your answer to 4 decimal places.) \table[[,BHP,,,,Toronto,,],[,Billiton,Siemens,Nestlé,LVMH,Dominion Bank,Samsung,BP],[BHP Billiton,1.00,0.32,0.42,0.36,0.22,0.36,0.19],[Siemens,,1.00,0.33,0.22,0.19,0.36,-0.09],[Nestlé,,,1.00,0.12,0.13,0.05,0.13],[LVMH,,,,1.00,0.30,0.48,-0.04],[Toronto Dominion Bank,,,,,1.00,0.07,-0.07],[Samsung,,,,,,1.00,-0.06],[BP,22.00,33.80,44.80,20.30,14.00,34.50,42.40],[Standard deviation (%),,,,,,,]] Portfolio variance
Using the following annual returns, calculate the estimates of the arithmetic mean returns, the variances, and the standard deviations for assets X and Y. Also calculate the estimates of the covariance and correlation between X and Y. These five years are a sample of the entire population of returns for X and Y. Year 2001 2002 2003 2004 2005 Returns X 11% 6% -8% 28% 13% Y 36% -7% 2% -12% 43% A stock has had returns over the past six years of 29%, 14%, 23%, -18%, 9%, and -14%. What was its arithmetic mean and geometric mean returns over that period? What was the standard deviation of its returns over this six-year period?

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