User Account

All Pages

Calculate the expected return and standard deviation for a

Assignment Help Portfolio Management
Reference no: EM131099717

Problem

Given the following information, calculate the expected return and standard deviation for a portfolio that has 32 percent invested in Stock A, 31 percent in Stock B, and the balance in Stock C.

   

Returns

State of

Probability of

      

Economy

State of Economy

Stock A

Stock B

Stock C

Boom

.40

17%

20%

23%

Bust

.60

18

0

–18

  Expected return

%

  Standard deviation

%

a) Calculation of Expected return on portfolio?

b) Calculation of Standard deviation of portfolio?

Reference no: EM131099717

Questions Cloud

Should you select this option for your course project : Find another reading by one of the authors that we studied that we did not cover in this class. Compare and contrast the reading from this class to the outside reading. Have a debatable, persuasive claim and focus on specific points of comparison.
Determine the flowrate and the pressure in the hose : Determine the flowrate and the pressure in the hose - Determine the temperature after compression, in K.
Interactions among the variables : Describe the relationship you expect to find between each variable and any interactions among the variables. You may wish to include a rationale for your hypothesis.
Find the probability that a randomly chosen adult : Find the probability that a randomly chosen adult is obese, given that he or she suffers from diabetes. Round your answer to 2 decimal places. Find the probability that a randomly chosen adult who is obese also suffers from diabetes. Round your a..
Calculate the expected return and standard deviation for a : Given the following information, calculate the expected return and standard deviation for a portfolio that has 32 percent invested in Stock A, 31 percent in Stock B, and the balance in Stock C.
Discuss your progress and performance in your role : Introduce your Cooperative Education placement to provide context. Reflective overview: Discuss your progress and performance in your role, major knowledge and your professional skills against initial thoughts and expectations
Compute the low-frequency gain and the -3-db bandwidth : Plot the frequency response and compute the low-frequency gain and the -3-dB bandwidth
How does literary representation of historical events : In two to three pages(excluding title and reference pages), explain in your own words what cultural memory is and apply this concept to literature. How does literary representation of historical events help create our sense of cultural identity? C..
Typical phases of operation of a virus or worm : 1. What are typical phases of operation of a virus or worm? 2. What is a digital immune system

Reviews

Write a Review

Portfolio Management Questions & Answers

  Portfolio analysis

The stock with the lowest beta (0.76) is Apple Inc. stock. The stock with the highest beta (3.29) is Facebook Inc. stock. Beta for Apple Inc. stock is less that 1, it tells us that stock price is less volatile and risky than mark..

  Provide investment portfolio advice

Provide investment portfolio advice and management to a client.

  Evaluate total number of shares

EBV proposes to structure the investment as 5m shares of CP with FV of $5m, one-to one conversion to common, and no dividends. Total Valuation Estimated from Newco.

  Role of the imf and world bank

Economic and territorial logic of empire are not always aligned. Explain his argument in light of the role of the IMF and World Bank as forms of neo imperialism.

  Prepare a portfolio of stocks

Prepare a portfolio of stocks

  Which critically examines the benefits and risks to company

Which critically examines the benefits and risks to a company, of incorporating corporate debt into a portfolio of equity and debt.

  Compute the variance-covariance matrix

Compute the sample mean, variance, and standard deviation of these shares and compute the variance-covariance matrix V and Plot the daily share prices and daily returns for each individual asset.

  Net nominal rate of interest and net real rate of interest

What bank portfolio can guarantee the rate of return 1 to all type 1 people and the rate of return 1.2 to all type 2 people? How many goods are placed in storage? In capital?

  Right issue to improve financial status

If you are the CEO of a British company that now faces the loss of a lucrative contract in Malaysia because of the dispute. What action should you take and How do you think British government should respond to the Malaysian action?

  Calculate the cost of reinvested profits

Calculate the cost of reinvested profits and the cost of new common shares using the constant-growth DVM - Cost of reinvested profits versus new common shares-DVM

  Calculate the after-tax cost of debt

Cost of debt For each of the following bonds, calculate the after-tax cost of debt. Assume the coupons are paid semi-annually, that the tax rate is 40 percent, and that we are dealing with $1,000 of par value.

  Calculate the overall cost of capital for cartwell products

Calculate the overall cost of capital for Cartwell Products. Which projects should the firm select? Does your answer differ from your answer topart d? If so, explain why.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd