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

Creditors voluntary winding up-liquidation of companies , Creditors' volu...

Creditors' voluntary winding up If no declaration of solvency is filed the winding up must take place under the control of the creditors. 1. Meeting of creditors : Th

Reasons that influence firm''s degree of transaction exposure, Define reaso...

Define reasons that influence a firm's degree of transaction exposure? What reasons influence a firm's degree of ‘transaction exposure' in a certain currency? For each reason d

Principles of banking and finance, Q. Principles of banking and finance? ...

Q. Principles of banking and finance? An introduction to the principles of banking and finance. It covers a broad variety of topics using an economic perspective and aims to gi

Ratios, equity share capital rs 10 200 10% preference share capital 80 15%...

equity share capital rs 10 200 10% preference share capital 80 15% debenture 20 profit before interest and taxes 60 proposed dividend 20 provision fo

Illustrations of dissolutions, Illustrations of Dissolutions X, Y and Z...

Illustrations of Dissolutions X, Y and Z have been trading as partners sharing profits and losses in the ratio of 2:2:1 on the 1st July 2005, they decided to dissolve the partn

Historical cost accounting, definition of historical cost accounting

definition of historical cost accounting

Trial balance, Jim owns and manages a small business, which provides an off...

Jim owns and manages a small business, which provides an office design service, as well as buying and selling office furniture. Jim is a sole trader who manages all aspects of the

Annuity, An annuity is explained as stream of uniform duration cash flows. ...

An annuity is explained as stream of uniform duration cash flows. The payment of life insurance premium through the policyholder to the insurance company is an illustration of an a

Acquisition during the financial period-group accounts, Acquisition during ...

Acquisition during the financial period The holding company may acquire the subsidiary company partway through the financial period such that as at the balance sheet date, the

Major qualitative characteristics of accounting information, Four major qua...

Four major qualitative characteristics of accounting information There are four major qualitative characteristics which influence usefulness of accounting information. Additio

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages