Question: Question 2 : Refer to the below table to answer the questions that follow. Assume that returns are effective annual rates or net discrete returns.

Question 2 : Refer to the below table to answer the questions that follow. Assume that returns are effective annual rates or net discrete returns.

Stock and Market Portfolio Effective Annual Returns
Year	Return on Stock A	Return on Market Portfolio
2017	0.22	0.30
2018	-0.16	-0.07
2019	0.15	0.28

Provide answers as decimals rounded to 6 decimal places. For example, if your answer is 0.23456789, write it as 0.234568.

Question 2a What is stock As past arithmetic average net discrete return?

Question 2b : What is the markets past arithmetic average net discrete return?

Question 2c What is the sample arithmetic standard deviation of stock As net discrete returns?

Question 2d : What is the sample arithmetic standard deviation of the market portfolios returns?

Question 2e What is the covariance of stock As returns with the market portfolio?

Question 2f : What is the correlation of returns between stock A and the market?

Question 2g : What is the beta of stock A?

Question 2h : What is the diversifiable variance of stock A?

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!

1. The total payroll tax expense incurred by the employer on salaries and wages paid during the quarter ended December 31 was.....................$ 2. The total payroll tax expense incurred by the...

Refer to the below table to answer the questions that follow. Assume that returns are effective annual rates or net discrete returns. Stock and Market Portfolio Effective Annual Returns Year, Return...

Question 3 (total of 20 marks): Refer to the below table to answer the questions that follow. Assume that returns are effective annual rates Year Return on Stock A Return on Market 2007 35% 15% 2008...

Question: Refer to the below table to answer the questions that follow. Assume that returns are effective annual rates. Year Return on Stock A Return on Market 2007 35% 15% 2008 -35% -25% 2009 15%...

Question 3 (total of 20 marks): An investor holds a portfolio comprising three assets (or stocks) A, B and C. Refer to the below tables to answer the questions that follow. Assume that returns are...

. Refer to the below information and answer the questions that follow. Nitrogen Chemicals of Zambia Limited is wholly owned by the Government of the Republic of Zambia through the Industrial...

Question2 (total of 12 marks): An investor has a portfolio of two securities, stock XYZ and an exchange traded fund (ETF) that tracks the ASX200 and charges negligible fees. Assume that the ASX200...

An investor has a portfolio of two securities, stock XYZ and an exchange traded fund (ETF) that tracks the ASX200 and charges negligible fees. Assume that the ASX200 ETF is the market portfolio. The...

For this assignment, you are to examine the 2018 financial statements of Sprouts Farmers Market, Inc., and use that report to answer the questions that follow. Each answer should be numbered, and...

1) Due to excellent performance over the past year, the board of your hedge fund has elected to award you a free month-long holiday in Hawaii for you and your family. The aeroplane and hotel bookings...

After reading the section in your text about HIPAA and reviewing the 9 short videos at the following website httpswwwhhsgovhipaaforindividualsguidancematerialsforconsumersindexhtml describe what you...

Two particles, of charges q1 and q2 are separated by distance d in Figure. The net electric field due to the particles is zero at x = d/4, with V = 0 at infinity, locate (in terms of. d) any point on...

What criteria might you use to rank the projects? Which quantitative ranking methods are better? Why? ( 1 5 % ) There are several quantitative ranking methods that can be used to evaluate and rank...

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

4. Write a policy document for the organisation in which you clarify the rules about the use of emails.

explain what is meant by redundancy

1. Do you think that this incident in which a worker inadvertently criticised the organisations future pay award in a mass email to all employees should be treated as a disciplinary offence?