User Account

All Pages

What are the expected rate of return and standard deviation

Assignment Help Financial Accounting
Reference no: EM132885062

Consider the following scenario analysis:

Rate of Return

                              Scenario                   Probability              Stocks Bonds

Recession            0.3                            -3 %                    12 %

Normal economy       0.6                            13                     8

Boom                       0.1                           26                     3

Assume a portfolio with weights of 0.60 in stocks and 0.40 in bonds.

Problem a. What is the rate of return on the portfolio in each scenario? (Enter your answer as a percent rounded to 1 decimal place.)

Problem b. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM132885062

Questions Cloud

How much of a casualty loss can mandy take as a deduction : How much of a casualty loss can Mandy take as a deduction? Mandy had a casualty loss on her rental property during 2020, Basis $650,000.
What is the value of Company X stock : Company X has just paid a dividend of $1.50 per share. The required return on Company X's stock is 11%. What is the value of Company X's stock
How much of the expenses does include in computing : $500 for smoking cessation program. How much is her of these expenses does she include in computing her medical expense deduction?
Do you think the provision of paid sick leave : Do you think the provision of paid sick leave is an ethicalissue and Do you think managers and organizations should provide workers with paid sick leave
What are the expected rate of return and standard deviation : What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent)
Explain link learning theories and styles : Explain how to link Learning Theories and styles to an L&TD strategy?
Calculate the average return on both the fund and the index : In a recent 5-year period, Calculate the average return on both the Fund and the index, and the standard deviation of the returns on each.
Explain the external market oriented approach : Please explain the External Market Oriented Approach (horizontal and vertical fit) in strategic human resource management.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the balance in oro investment in branch account

All but 45 percent of the inventory has been resold to unrelated parties by year-end. What is the balance in Oro's Investment in Branch account?

  What does about the company inventory turnover

Ralston Corp.'s cost of sales has remained steady. What does this information tell you about the company's inventory turnover? Explain your answer.

  Calculate the number of units of the pitcher-filters

Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-filter that only purifies water meant for drinking. Calculate the number of units of the p..

  Revenues and total costs

The following are last year's revenues and total costs for X Company:contribution margin rate

  Determine the number of rentals and the sales revenue

Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $60,000 per year. Jane employs a maintenance person at an annual salary of $32,000 and a cleaning person at an annual salary of $24,000...

  Nomar industries inc operates in several lines of business

nomar industries inc. operates in several lines of business including the construction and real estate industries.

  Budgeted cash sales-budgeted credit sales for september

Rong Comp. expects cash sales for July of $15,000 and a 20% monthly increase during August and September. Credit sales of $6,000 in July should be followed by 10% decreases during August and September. What are budgeted cash sales and budgeted credit..

  The procedures used in a review engagement

The procedures used in a review engagement are. The procedures used in a review engagement are. An important role of the public company accounting oversight board is to oversee the.

  What is the beps for year ended december for s ltd

S Ltd had profits attributable to ordinary equity holders of N$2M for the year ended 31 December 2019. What is the BEPS for year ended 31 December 2019?

  Compute shipping and warehousing cost per ton of llhc sold

Compute the shipping and warehousing cost per ton of LLHC sold by using the new method suggested by Jennifer and Kaylin.

  What is the amount of total revenue to be reported

What is the amount of total revenue to be reported on the income statement for the month of January? During January 2018, the first month of operations

  Prepare the trading and profit account for the year

Prepare the Trading and Profit and Loss Account for the year ended on Mar 31, 2009 and a Balance Sheet on that date

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