Reference no: EM13923818
Consider the following information about three stocks: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .20 .38 .50 .54 Normal .50 .21 .16 .13 Bust .30 .05 −.28 −.45
a-1 If your portfolio is invested 35 percent each in A and B and 30 percent in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Portfolio expected return 11.36 %
a-2 What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.)
Variance
a-3 What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Standard deviation %
b. If the expected T-bill rate is 4.70 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected risk premium 6.6 %
c-1 If the expected inflation rate is 4.20 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Approximate expected real return 7.16 %
Exact expected real return 6.87 %
c-2 What are the approximate and exact expected real risk premiums on the portfolio?
Approximate expected real risk premium %
Exact expected real risk premium
|
The role of juvenile courts-changing role of probation
: The Role of Juvenile Courts. The separation of the juvenile court from the adult court for hearing juvenile delinquencycases is a major social justice statement. The textbook lays out five critical thinking questions at the end of Chapter 6. Select..
|
|
What bid price should you submit
: Romo Enterprises needs someone to supply it with 126,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost you $930,000 to install the equipment nec..
|
|
Research social media policies at several organizations
: Imagine you work in the public relations department of your company, or one in your chosen field. Your business does not currently have a social media policy to guide its interactions online. Research social media policies at several organizations.
|
|
Establish and implement stricter ethical standards
: Question 1 Even if an organization does not have a history in which people have shared experiences for years, the organizational culture will stabilize. Question 2 The Organization for Economic Cooperation has recommended that global multinational..
|
|
Exact expected real risk premiums on the portfolio
: If your portfolio is invested 35 percent each in A and B and 30 percent in C, what is the portfolio expected return? What is the standard deviation? What are the approximate and exact expected real risk premiums on the portfolio?
|
|
What is the liquidity value of the firms assets
: What is the liquidity value of the firm's assets? Are these assets available for liquidation (are there any claims against them)? In many cases, asset sales are a critical part of the strategy for a leveraged buyout.
|
|
Historical juvenile crime data for specific category crime
: depicting your analysis of historical juvenile crime data for a specific category of crime, or criminal issue. As an alternative to PowerPoint, you can use one of the presentation applications listed here, or one approved by your instructor: MoveN..
|
|
Start saving for retirement
: Professor Slezak wants to start saving for his retirement, which will start in 15 years. He currently has no savings since he has been enjoying life and had to put two daughters through college (at out-of-state universities). How much does Slezak nee..
|
|
How important is the documentation of database environment
: How important is the documentation of the database environment? Moreover, how do you think the advent of cloud computing has affected electronic data interchange (EDI)
|