You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset:PortfolioRpopBpX14.0%1.3531%26Y13.01.10.75Z7.014Market10.2191.00Risk-free6.000Assume that the correlation of returns on Portfolio Y to returns on the market is .62. What percentage of Portfolio Y's return isdriven by the market? (Enter your answer as a decimal not a percentage. Round your answer to 4 decimal places.)R-squared

Answered: You are given the following information…

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter4: Equations Of Linear Functions

Section4.5: Correlation And Causation

Problem 2AGP

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Stock A has an expected annual return of 18% and a volatility of 34%. Stock B has an expected annual return of 12% and a volatility of 28%. The correlation of the returns of the two stocks is equal to 0.4. Find the expected return of the efficient portfolio with a volatility of 29%. solve on paper please
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Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Celestial Crane Cosmetics Inc. (CCC): Five years of realized returns for CCC are given in the following table. Remember: 1. While CCC was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on its equity are calculated as arithmetic returns. 3. The historical returns for CCC for 2014 to 2018 are: 2014 2015 2016 2017 2018 Stock return 18.75% 12.75% 22.50% 31.50% 9.75% Given the preceding data, the average realized return on CCC’s stock is . The preceding data series represents of CCC’s historical returns. Based on this conclusion, the standard deviation of CCC’s historical returns is . If investors expect the…
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Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Happy Dog Soap Inc. (HDS): Five years of realized returns for HDS are given in the following table. Remember: 1. While HDS was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on its equity are calculated as arithmetic returns. 3. The historical returns for HDS for 2014 to 2018 are: 2014 2015 2016 2017 2018 Stock return 8.75% 5.95% 10.50% 14.70% 4.55% Given the preceding data, the average realized return on HDS's stock is The preceding data series represents historical returns is of HDS's historical returns. Based on this conclusion, the standard deviation of HDS's If investors expect the average realized return from 2014 to 2018 on HDS's stock to continue into the future, its…

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