Which of the following are examples of portfolios? More than one answer may be correct. Multiple select question. An investment of $100,000 in 100 shares of the best performing stock on the New York Stock Exchange An investment of $100,000 in a combination of Canadian and Asian stocks An investment of $100,000 in the stocks of 50 publicly traded corporations An investment of $100,000 in 100 shares of the best performing stock on the Toronto Stock Exchange An investment of $100,000 in a combination of stocks and bonds
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Which of the following are examples of portfolios? More than one answer may be correct.
An investment of $100,000 in 100 shares of the best performing stock on the New York Stock Exchange
An investment of $100,000 in a combination of Canadian and Asian stocks
An investment of $100,000 in the stocks of 50 publicly traded corporations
An investment of $100,000 in 100 shares of the best performing stock on the Toronto Stock Exchange
An investment of $100,000 in a combination of stocks and bonds
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- Give typing answer with explanation and conclusion In evaluating the performance of your Canadian equity mutual fund, the most appropriate comparison would be its performance relative to the Question 57 options: Dow Jones Industrial Average. S&P 500 index. S&P/TSX composite index. cost of living (CPI) index.You plan to invest $1000 in a corporate bond fund or in a common stock fun. The information to the right about the annual return (per $1000) of each of these investments under different economic conditions is available, along with the probability that each of these economic conditions will occur. Complete parts (a) through (c) a. Compute the expected return for the corporate bond fund and for the common stock fund b. Compute the standard deviation for the corporate bond fund and for the common stock fund c. Would you invest in the corporate bond fund or the common stock fund? Explain.Use the information for the question(s) below. An exchange-traded fund (ETF) is a security that represents a portfolio of individual stocks. Consider an ETF for which each share represents a portfolio of three shares of International Business Machines (IBM), five shares of Apple (AAPL), and eight shares of Tesla (TSLA). Suppose the current market price of each individual stock is shown below: Stock Current Price IBM $145.60 Apple $180.00 Tesla $267.50 What is the price per share of the ETF in a normal market? Assume that the ETF is trading for $3,700.00. What (if any) arbitrage opportunity exists? What (if any) trades would you make?
- Donald Gilmore has $100,000 invested in a 2-stock portfolio. $77,500 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta? Select the correct answer. a. 1.26 b. 1.28 c. 1.30 d. 1.34 e. 1.32Using an internet search engine, review the Vanguard 500 Index Fund (VFIAX) overview, performance and fees. VFIAX url: https://investor.vanguard.com/mutual-funds/profile/VFIAX Please answer the following questions What is the investment objective of VFIAX? What does the term "market efficiency" mean as applied to the U.S. stock market? If an investor had invested $10,000 in VFIAX 10 years ago, what would that investment have grown to by the last day of last month? What are the three largest economic sectors represented in VFIAX? What is the expense ratio associated with VFIAX? Which approach to mutual fund investing, passively-managed index funds or actively-managed mutual funds, relies on inefficiencies in the U.S. capital markets? Explain your response Explain lessons from capital market history Evaluate the implications of market reactions to market efficiency.) The following questions are based on the given information from table of probability distributions of returns on investment individual shares and portfolio below: Table 3: Probability distributions of returns on investment for individual shares and portfolio. State of Probability of the States Return on Share A Return on Share B (rB) Return on Portfolio AB (ran) Economy (ra) 0.20 0.20 0.20 0.20 0.20 15% -5% 5% 35% 25% -5% 15% 25% 5% 35% 5% 5% 15% 20% 30% -234
- Suppose you manage an equity fund with the following securities. Use the following data to calculate the information ratio of each stock. Input Data Vogt Industries Isher Corporation Hedrock, Incorporated Alpha 0.012 0.006 0.016 Beta 0.277 1.015 1.630 Standard Deviation 0.156 0.168 0.181 Residual Standard Deviation 0.117 0.048 0.113 Required: Using the information in the table above, please calculate the information ratio for each stock. (Use cells A5 to D8 from the given information to complete this question.) Vogt Industries Isher Corporation Hedrock, Incorporated Information RatioSuppose you visit with a financial adviser, and you are considering investing some of your wealth in one of three investment portfolios: stocks, bonds, or commodities. Your financial adviser provides you with the following table, which gives the probabilities of possible returns from each investment: Stocks Bonds Commodities Probability Return Probability Return Probability Return 20% 15% 0.15 20% 0.6 10% 0.2 0.2 12.5% 0.4 7.5% 0.2 0.25 0.2 0.4 3.8% 0.2 0.2 0% To maximize your expected return, you should choose O A. commodities. B. bonds. OC. stocks. OD. All of the portfolios have the same expected returnPls show all parts or skip
- Suppose all possible investment opportunities in the world are limited to the five stocks listed in the following table. What are the market portfolio weights? (Click on the following icon O in order to copy its contents into a spreadsheet.) Number of Shares Outstanding (millions) Stock Price/Share ($) A 8.43 10 В 19.15 12 C 5.94 46.68 1 E 42.87 ..... Enter the percentage that each stock makes up of the total portfolio: (Round to two decimal places.) Stock % of Total (portfolio weight) A % В % E % 209. Portfolio beta and weights Rafael is an analyst at a wealth management firm. One of his clients holds a $10,000 portfolio that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Atteric Inc. (AI) Arthur Trust Inc. (AT) Li Corp. (LC) Transfer Fuels Co. (TF) Investment Allocation O 0.9009 percentage points O 1.4322 percentage points 35% 20% 15% 30% 1.1550 percentage points O 1.3283 percentage points Beta 0.900 1.400 1.100 0.300 O Undervalued Standard Deviation Rafael calculated the portfolio's beta as 0.850 and the portfolio's required return as 8.6750%. Rafael thinks it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing Atteric Inc.'s shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 4%, and the market risk premium is 5.50%. 23.00% 27.00% According to Rafael's recommendation, assuming that…Shown below are the investment weights for the securities held in four different portfolios: three mutual funds and the benchmark index that each of those funds uses. % Security Investment Weight: Fund X: Fund Y: Fund Z: % a. Calculate the active share (AS) measure for Fund X, Fund Y, and Fund Z relative to the benchmark index. Do not round intermediate calculations. Round your answers to one decimal place. % Security Benchmark Index 1 2 3 4 5 6 7 8 9 % 10 10% 10 10 10 10 10 10 10 10 10 Fund X Fund Y Fund Z 7% 35% 11% 13 0 11 15 5 11 0 11 0 11 0 11 25 9 30 9 0 9 0 9 5 7 10 5 11 11 11