The capital asset pricing model is a financial model that

Assignment Help Basic Statistics

Reference no: EM13631748

The Capital Asset Pricing Model is a financial model that assumes returns on a portfolio are normally distributed. Suppose a portfolio has an average annual return of 14.7% (i.e. an average gain of 14.7%) with a standard deviation of 33%. A return of 0% means the value of the portfolio doesn't change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money.

a.) What percent of years does this portfolio lose money, i.e. have a return less than 0%

b.) What is the cutoff for the highest 15% of annual returns with this portfolio

Reference no: EM13631748

Questions Cloud

Two meshing helical gears have a 25 degree transverse : two meshing helical gears have a 25 degree transverse pressure angle and a 20 degree normal pressure angle. the gears

A what would be the length of one day if the earth spun so : a what would be the length of one day if the earth spun so fast that bodies floated at the equator? radius of the earth

A 25 degree full-depth spur gear with 45 teeth has an : a 25 degree full-depth spur gear with 45 teeth has an addendum of 13 in. what is the minimum number of teeth the pinion

A long slab is heated to 100oc on both sides and then : a long slab is heated to 100oc on both sides and then exposed to a focused stream of cold air on the top edge - giving

The capital asset pricing model is a financial model that : the capital asset pricing model is a financial model that assumes returns on a portfolio are normally distributed.

A hydraulic jump at the base of a spillway of a dam is such : a hydraulic jump at the base of a spillway of a dam is such that the depths upstream and downstream of the jump are .90

From their 50 data points washington dc not in the study : from their 50 data points washington dc not in the study the researchers calculated a correlation of 0.988. based on

Determie a if the quality of the mixture is initially at 50 : a 2.0 cubic meter rigid tank contains a water-vapor mixture at 100 kpa. heat is transfered until the pressure reaches

If the air around the thermocouple is at 20oc and the walls : image text transcribed for accessibility a black thermocouple is used to measure the internal temperature of a furnace

User Account

All Pages