expected quarterly return, Financial Accounting

Assignment Help:

Common stocks A, B, C, and D had the following quarterly returns.

A	B	C	D
0.07	0.05	0.07	0.12
0.14	0.08	0.05	0.09
0.10	0.14	-0.04	0.13
-0.09	-0.10	0.05	0.06
0.12	0.05	0.06	0.08
0.13	0.09	0.10	0.07
0.11	0.12	0.13	0.05
-0.06	0.03	0.09	0.11
0.07	-0.07	-0.08	0.06
0.08	0.07	0.08	0.10

a) Verify the expected quarterly return, and standard deviation of each stock.

b) Verify the correlations between them.

c) What is the standard deviation and expected return of a portfolio comprised of 20% stock A, 15% stock B, 30% stock C, and 35% stock D.

Related Discussions:- expected quarterly return

Objectives of time value of money, After going through this section, you mu...

After going through this section, you must be capable to: - Identify the time value of money; - Know what gives money its time value; - Identify

Treatment of cash flow - gaap & fasb, The appropriate treatment of Cash flo...

The appropriate treatment of Cash flow in respect of the following items as per US GAAP & FASB - (230-10) 1. Receipt of Insurance settlement proceeds of $2 mill. From an intern

Comment on financial position and performance, BFD Co has occurrence rapid ...

BFD Co has occurrence rapid growth in turnover since its formation three years ago but it has been unable to maintain net profit margin which has fallen from 19% in 2002 to 12% in

calculate a weighted average contribution margin per unit, Part A ...

Part A The contribution margin income statement of Nice Cup Company for 31 December 2011 follows: Nice Cup Company Contribution Mar

Adjustments, provide for depreciation at 10%p.a at cost for equipment and 1...

provide for depreciation at 10%p.a at cost for equipment and 15% at book value for vehicles

A gift of residue-will-executorship law and accounts, A gift of residue ...

A gift of residue Where property is not given by a specific legacy nor by a general legacy, it makes up the residue of the testator's estate. If the testator fails to make a g

Final accounts-branches, Final accounts 1) Examination questions – ...

Final accounts 1) Examination questions – two types of problems arise in examinations: transfers between head office and branch are made at cost; or Transfers bet

Difference between npv and irr, Function to return the phase of a complex n...

Function to return the phase of a complex number 1. What is Annuity kind of cash flow? 2. What do understand by Portfolio risk? 3. What do you understand by 'Loan Am

Generally accepted accounting principles (gaap), Generally Accepted Account...

Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as tehy prepare and issue financial statements. Let's start by getting an understanding of wh

Determine mutually exclusive projects - profitability index, 1. What is the...

1. What is the internal rate of return for a project that has a net investment of $150,000 and net cash flows of $40,000 for 5 years? 2. Using the profitability index, which of

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages