and why? Thanks! 5.2 Risk and Risk Premiums - Which portfolio is more risky? 8 C D
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5.2 Risk and Risk Premiums - Which portfolio is more risky? 8 C D 1 Spreadsheet 5.1 2 Scenario analysis for the stock market 3 Scenario 41 Severe recession 5 2 Mild recession 63. Normal growth 74 Boom 8 Column sums: 9 1 2 Probability HPR (5) 0.05 0.25 0.40 3 Scenario 41 Sepere recession 5.2. Mecession 63 Norhal growth 74 Boom Column sums: -37 -11 14 30 B 0.30 Expected return = Square root of variance C Column B x Column C 12-11 -1.85 -2.75 5.60 9.00 10.00 A Spreadsheet 5.1 Scenario analysis for the stock market Probability HPR (%) 0.05 0.25 040 0.30 Expected return Square root of variance D 4.00 20.00 Variance Standard deviation (%) Column B x Column C Deviation from Mean Return -1.95 -2.25 4.84 9.36 10.00 -47.00 -21.00 Deviation from Mean Return -49.04 -19.00 2.11 Column B x Squared Deviation 21.20 Variance Standard deviation (%) = 110.45 110.25 6.40 120.00 347,10 18.63 Column B x Squared Deviation 120.2512293 90.26947605 1,78 134.81 18.63 5.2 Risk and Risk Premiums - Which portfolio is more risky? 8 C D 1 Spreadsheet 5.1 2 Scenario analysis for the stock market 3 Scenario 41 Severe recession 5 2 Mild recession 63. Normal growth 74 Boom 8 Column sums: 9 1 2 Probability HPR (5) 0.05 0.25 0.40 3 Scenario 41 Sepere recession 5.2. Mecession 63 Norhal growth 74 Boom Column sums: -37 -11 14 30 B 0.30 Expected return = Square root of variance C Column B x Column C 12-11 -1.85 -2.75 5.60 9.00 10.00 A Spreadsheet 5.1 Scenario analysis for the stock market Probability HPR (%) 0.05 0.25 040 0.30 Expected return Square root of variance D 4.00 20.00 Variance Standard deviation (%) Column B x Column C Deviation from Mean Return -1.95 -2.25 4.84 9.36 10.00 -47.00 -21.00 Deviation from Mean Return -49.04 -19.00 2.11 Column B x Squared Deviation 21.20 Variance Standard deviation (%) = 110.45 110.25 6.40 120.00 347,10 18.63 Column B x Squared Deviation 120.2512293 90.26947605 1,78 134.81 18.63
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Based on the information provided in the table portfolio C is riskier than portfolio F This is becau... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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