User Account

All Pages

Estimate expected returns and standard deviations

Assignment Help Business Management
Reference no: EM133531218

Question

You would like to form a portfolio of two stocks (A and B). The holding period returns (HPR) of the two stocks over the past ten years are given in the following table: Year A B 2013 17.00% 32.00% 2014 25.00% 17.00% 2015 0.00% 13.00% 2016 30.00% -8.00% 2017 -15.00% 30.00% 2018 45.00% 50.00% 2019 12.00% -15.00% 2020 18.00% 20.00% 2021 9.00% 15.00% 2022 -2.00% -10.00%

1. Estimate the expected returns and the standard deviations of the two stocks. Also estimate the correlation between the two stocks. Compare your estimates to average historical values observed in the US or UK stock market?

2. Calculate the expected return and standard deviation of i) an equally weighted portfolio.

Reference no: EM133531218

Questions Cloud

Elaborate on how you define notion of success for yourself : Elaborate on how you define the notion of success for yourself. A little bit about myself: early 30's, married, credit score is in the mid 600's, 4 children.
Explain opportunistic pathogens : Explain opportunistic pathogens and give an example of a disease and its causative agent that fits into that category, and why i considered an opportunistic
Discuss the revenue cycle and the role of coding : Discuss The revenue cycle and the role of coding. - What are the advantages and disadvantages of off-shore coding?
Where you use two cultures : add water instead of the second culture, then use the sample results provided when you need to interest results. What does this mean
Estimate expected returns and standard deviations : Estimate the expected returns and the standard deviations of the two stocks. Calculate expected return and standard deviation of i) equally weighted portfolio.
Determine primary vulnerabilities and hazard to jurisdiction : Review the emergency plan, as well as the appendices to the plan, to determine the primary vulnerabilities and hazards to your particular jurisdiction.
Identify the steps in the new product development process : Identify the steps in the new product development process and evaluate the challenges. identify the challenges of each step. Use boxes to illustrate the steps
Example of an organism within each of the four main : Example of an organism within each of the four main nutritional categories of microbes and describe how each obtains its essential nutrients
Discuss the major modes of action of antimicrobial agents : Discuss the major modes of action of antimicrobial agents in controlling microbial growth and give examples of antimicrobials for each mode of action.

Reviews

Write a Review

Business Management Questions & Answers

  Explain the five legal challenges you could use

If the proposal passes, Classify and explain the five legal challenges you could use in an attempt to have the regulation declared invalid and overturned?

  Improve the facility layout to increase productivity

Finally, if given the opportunity, how could you improve the facility's layout to increase productivity and/or lower costs.

  What is the target fee for an overnight stay

Let us suppose that a hospital wants to set their fees for an overnight stay such that the contribution margin on a hospital room will be 32%. The cost to the hospital of an overnight stay (staff, physical equipment, and supplies) is $450. What fe..

  Emerging performance management topics

Emerging Performance Management Topics

  Which resource should the company work ton increase

Which resource should the company work ton increase inventory space or assembly time? Explain using at least 70 words. Justify your answer based on your report.

  Why not try to end the campaign by killing the sheriff

What strategic options does Robin Hood have? Is continuing with the present strategy an option or is the present strategy obsolete? Why not try to end the campaign by killing the Sheriff? What are the pros and cons of accepting the offer of the baro..

  Assignment on business intelligence

Zestimate values on Zillow use data-mining features for spotting trends across property valuations. Data mining also allows the company to see how accurate Zest

  How technological advancements during lifetime

-Research and describe how technological advancements during your lifetime have changed how the industry or field operates.

  Describe the municipality demographics

Briefly describe the municipality's demographics. Evaluate the previous three-year trend of the municipality's major revenue sources and expenditures.

  Define importance of purchasing and supply management

Define the importance of purchasing and supply management and how this relates to selecting a qualified supplier.

  Find the tuskegee case

To what extent should blame for the lack of ethical conduct be placed on the shoulders of Nurse Eunice Rivers? Although never in charge, it should be noted that

  Businesses and describe the types of technology

Identify the technology used in businesses and describe the types of technology used to support general business functions. Discuss challenges presented to management due to managing existing technology.  How does technology impact the sales, mark..

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