Stock R and S displayed the following returns over the past 3 years, Stock R Stock...
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Stock R and S displayed the following returns over the past 3 years, Stock R Stock S Return Return 8% 10% 10% 15% 15% 18% a. b. The probabilities of returns from these 3 years are equally likely (i.e. probability of 1/3 each) for 20X7. What is the expected return of stock R and stock S in 20X7? What is the standard deviation of each stock? What is the covariance & correlation coefficient of stock R and stock S? What is the expected return for 20X7 for a portfolio made up of 40% in stock R and 60% in stock S? What is the risk of a portfolio made up of 40% in stock R and 60% in stock S? C. d. Year 20X4 e. 20X5 20X6 Consider a third stock T, along with stocks R and S in above Question. Its return over the past 3 years was: 20X4, 16%; 20X5, 11% and 20X6, 8%. The returns from these 3 years are equally likely for 20X7. Would stock T provide any benefits in combination with: Stock R? Stock S? Which combination is preferred? What is the expected return and risk for this preferred combination? a. b. C. d. Stock R and S displayed the following returns over the past 3 years, Stock R Stock S Return Return 8% 10% 10% 15% 15% 18% a. b. The probabilities of returns from these 3 years are equally likely (i.e. probability of 1/3 each) for 20X7. What is the expected return of stock R and stock S in 20X7? What is the standard deviation of each stock? What is the covariance & correlation coefficient of stock R and stock S? What is the expected return for 20X7 for a portfolio made up of 40% in stock R and 60% in stock S? What is the risk of a portfolio made up of 40% in stock R and 60% in stock S? C. d. Year 20X4 e. 20X5 20X6 Consider a third stock T, along with stocks R and S in above Question. Its return over the past 3 years was: 20X4, 16%; 20X5, 11% and 20X6, 8%. The returns from these 3 years are equally likely for 20X7. Would stock T provide any benefits in combination with: Stock R? Stock S? Which combination is preferred? What is the expected return and risk for this preferred combination? a. b. C. d.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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