The standard deviation of the stocks. Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.

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Answer 1

Question

Chapter 8, Problem 13PS

A

Summary Introduction

To calculate: The standard deviation of the stocks.

Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.

B

Summary Introduction

To calculate: The systematic risk and unsystematic risk of the stocks.

Introduction: The systematic risk also known as market risk or undiversified risk. Systematic risk is defined as the risk of the market segment. This type of risk is unpredictable in nature and not removable. Unsystematic risk belongs to the specific company or firm. Other names are residual risk or specific risk.

C

Summary Introduction

To calculate: The covariance and correlation of the stocks to the market index.

Introduction: The covariance is used to determine the movement of the two assets. If both are moving same direction then value of covariance is positive otherwise it is negative. Correlation defined as the dependency of the stocks on each other.

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Answer 2

Question

Chapter 8, Problem 13PS

A

Summary Introduction

To calculate: The standard deviation of the stocks.

Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.

B

Summary Introduction

To calculate: The systematic risk and unsystematic risk of the stocks.

Introduction: The systematic risk also known as market risk or undiversified risk. Systematic risk is defined as the risk of the market segment. This type of risk is unpredictable in nature and not removable. Unsystematic risk belongs to the specific company or firm. Other names are residual risk or specific risk.

C

Summary Introduction

To calculate: The covariance and correlation of the stocks to the market index.

Introduction: The covariance is used to determine the movement of the two assets. If both are moving same direction then value of covariance is positive otherwise it is negative. Correlation defined as the dependency of the stocks on each other.

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 13PS

A

Summary Introduction

To calculate: The standard deviation of the stocks.

Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.

B

Summary Introduction

To calculate: The systematic risk and unsystematic risk of the stocks.

Introduction: The systematic risk also known as market risk or undiversified risk. Systematic risk is defined as the risk of the market segment. This type of risk is unpredictable in nature and not removable. Unsystematic risk belongs to the specific company or firm. Other names are residual risk or specific risk.

C

Summary Introduction

To calculate: The covariance and correlation of the stocks to the market index.

Introduction: The covariance is used to determine the movement of the two assets. If both are moving same direction then value of covariance is positive otherwise it is negative. Correlation defined as the dependency of the stocks on each other.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 13PS

A

Summary Introduction

To calculate: The standard deviation of the stocks.

Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.

B

Summary Introduction

To calculate: The systematic risk and unsystematic risk of the stocks.

Introduction: The systematic risk also known as market risk or undiversified risk. Systematic risk is defined as the risk of the market segment. This type of risk is unpredictable in nature and not removable. Unsystematic risk belongs to the specific company or firm. Other names are residual risk or specific risk.

C

Summary Introduction

To calculate: The covariance and correlation of the stocks to the market index.

Introduction: The covariance is used to determine the movement of the two assets. If both are moving same direction then value of covariance is positive otherwise it is negative. Correlation defined as the dependency of the stocks on each other.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 13PS

A

Summary Introduction

To calculate: The standard deviation of the stocks.

Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.

B

Summary Introduction

To calculate: The systematic risk and unsystematic risk of the stocks.

Introduction: The systematic risk also known as market risk or undiversified risk. Systematic risk is defined as the risk of the market segment. This type of risk is unpredictable in nature and not removable. Unsystematic risk belongs to the specific company or firm. Other names are residual risk or specific risk.

C

Summary Introduction

To calculate: The covariance and correlation of the stocks to the market index.

Introduction: The covariance is used to determine the movement of the two assets. If both are moving same direction then value of covariance is positive otherwise it is negative. Correlation defined as the dependency of the stocks on each other.

Answer 6

Chapter 8, Problem 13PS

A

Summary Introduction

To calculate: The standard deviation of the stocks.

Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.

Answer 7

Chapter 8, Problem 13PS

A

Summary Introduction

To calculate: The standard deviation of the stocks.

Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.

Answer 8

B

Summary Introduction

To calculate: The systematic risk and unsystematic risk of the stocks.

Introduction: The systematic risk also known as market risk or undiversified risk. Systematic risk is defined as the risk of the market segment. This type of risk is unpredictable in nature and not removable. Unsystematic risk belongs to the specific company or firm. Other names are residual risk or specific risk.

Answer 9

B

Summary Introduction

To calculate: The systematic risk and unsystematic risk of the stocks.

Introduction: The systematic risk also known as market risk or undiversified risk. Systematic risk is defined as the risk of the market segment. This type of risk is unpredictable in nature and not removable. Unsystematic risk belongs to the specific company or firm. Other names are residual risk or specific risk.

Answer 10

C

Summary Introduction

To calculate: The covariance and correlation of the stocks to the market index.

Introduction: The covariance is used to determine the movement of the two assets. If both are moving same direction then value of covariance is positive otherwise it is negative. Correlation defined as the dependency of the stocks on each other.

Answer 11

C

Summary Introduction

To calculate: The covariance and correlation of the stocks to the market index.

Introduction: The covariance is used to determine the movement of the two assets. If both are moving same direction then value of covariance is positive otherwise it is negative. Correlation defined as the dependency of the stocks on each other.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 8 - Prob. 1PS Ch. 8 - Prob. 2PS Ch. 8 - Prob. 3PS Ch. 8 - Prob. 4PS Ch. 8 - Prob. 5PS Ch. 8 - Prob. 6PS Ch. 8 - Prob. 7PS Ch. 8 - Prob. 8PS Ch. 8 - Prob. 9PS Ch. 8 - Prob. 10PS

The standard deviation of the stocks. Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.

Solution Summary: The author explains how to calculate the standard deviation of stocks, which shows the fluctuations of the quantities around the mean value.

To calculate: The standard deviation of the stocks.

Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.

Want to see the full answer?

Chapter 8 Solutions

The standard deviation of the stocks. Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.

Solution Summary: The author explains how to calculate the standard deviation of stocks, which shows the fluctuations of the quantities around the mean value.

To calculate: The standard deviation of the stocks. Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.

Want to see the full answer?

Chapter 8 Solutions

To calculate: The standard deviation of the stocks.

Introduction: To measure the risk of the portfolio standard deviation is used. It shows the fluctuations of the quantities around the mean value. Low value means all values are close to mean value but high value means all values are spreading.