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

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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