Question: Hi pls help. not in excel. Avoid writting on paper also if can due to blur quality and hand writting. Use the information given below

Hi pls help. not in excel. Avoid writting on paper also if can due to blur quality and hand writting. Use the information given below answer the following questions.

Bear Market

Normal Market

Bull market

Probability

0.2

0.5

0.3

Stock A

-20%

18%

40%

Stock B

-15%

10%

20%

  1. What are the expected returns and standard deviation for Stock A?

  1. Assume that you have invested RM 75,000 in Stock A, RM 85,000 in stock B, what is the expected return on your portfolio given the expected return on Stock B is 8%.

  1. If the correlation between A and B is 0.7, what is the portfolio standard deviation given the standard deviation of Stock B is 12.29%?

d. Which of the two stocks is riskier and explain why?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Explain the similarities and differences between job order costing and process costing. In your explanation, provide examples of when job order costing and process costing would be most appropriate....

Q:

In Chapter 3, you were introduced to 3 types of costs associated with a manufactured product ? direct materials, direct labor, and manufacturing overhead. Explain how these costs are associated with...

Q:

The requirements are in world file. The pdf file includes the case. Only one-page write. Answer following questions and write one page (double space) What are the challenges of exiting private equity...

Q:

Please write the selecting tools and approaches (according to the subject R esearch Method ) for this topic SECOND LANGUAGE ACQUISITION: LEVEL OF INTEREST IN LEARNING MANDARIN CHINESE LANGUAGE AS A...

Q:

PLEASE ANSWER THESE QUESTIONS DONT COPY FROM INTERNET SOURCE PLEASE IT SHOWS PLAG c)What KEY FACTORS may determine the success for Gap Inc.? Explain THREE in your answer. d)Recommendations Make...

Q:

JBR-07575; No of Pages 12 Journal of Business Research xxx (2012) xxx-xxx Contents lists available at SciVerse ScienceDirect Journal of Business Research Organizational innovation as an enabler of...

Q:

Wesleyan Economic Working Papers http://repec.wesleyan.edu/ No: 2012-006 Closing the Gender Gap: What Would It Take? Joyce P. Jacobsen January, 2012 Department of Economics Public Affairs Center 238...

Q:

I need help with the following review questions please! Its related to ethics and accounting, should be straight forward please help. I need this by tomorrow. Please let me know if you need any...

Q:

Rev.Confirming Pages C H A P T E R 7 Planning, Composing, and Revising Chapter Outline The Ways Good Writers Write Activities in the Composing Process Using Your Time Effectively Brainstorming,...

Q:

WINTER 2010 V O L . 5 1 N O. 2 Steven A. Melnyk, Edward W. Davis, Robert E. Spekman and Joseph Sandor Outcome-Driven Supply Chains REPRINT NUMBER 51221 S U P P L Y C H A I N : M A N A G I N G F O R M...

Q:

Calculating Taxable Income Taxable income Rate $1 $9,075 10.0% $9,076 $36,900 15.0% $36,901 $89,350 25.0% $89,351 $186,350 28.0% $186,351 $405,100 33.0% $405,101 $406,750 35.0% Over $406,751...

Q:

Phoebe is a sole trader who runs a small catering company, Hilarys Bistro. She has asked you to help her with the preparation of her financial statements this year as she is unhappy with the service...

Q:

Which of the following variables is / are not required inputts ) for parsimonious multiyear forecasting? Select one: A Net operating asset turnover ( WOAT ) B . Net operating profits margin ( NOPM )...

Q:

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...