Use Excel to calculate the question 4-10. (Use =STDEV function on question #4. Use =SQRT

function Question 7, 10). Using A.I or Gpt to calculate, will produce the wrong answers!

Question 1

An efficient portfolio:

I. has only unique risk

II. provides the highest expected return for a given level of risk

III. provides the least risk for a given level of expected return

IV. has no risk at all

Group of answer choices

A. IV only

B. II only

C. II and III only

D. I only

Question 2

As the number of stocks in a portfolio is increased:

Group of answer choices:

A. total risk approaches zero

B. unique risk decreases and becomes equal to market risk

C. market risk decreases

D. unique risk decreases and approaches zero

Question 3

The correlation coefficient between the efficient portfolio and the risk-free asset is:

Group of answer choices

A. +1.0

B. need further information

C. 0.0

D. -1.0

Question 4

A stock had returns of 7.16 percent, -6.22 percent, and 16.48 percent for the past three years. What is the standard deviation of the returns? (Note that this is a sample of returns.)

Enter your answer as a decimal rounded to the nearest fourth decimal place. For example, enter 12.345% as .1235.

Question 5

Stock M and Stock N have had the following sample of returns for the past three years: 4%, 19%, 8%; and -16%, 19%, 10%, respectively. Calculate the covariance between the two securities.

Enter your answer as a decimal rounded to the fourth decimal place. For example, enter 12.345% as .1235.

Question 6

A stock had returns of 2.06 percent, 1.77 percent, and 14.93 percent for the past three years. What is the variance of the returns? (Note that this is a sample of returns.)

Enter your answer as a decimal rounded to the nearest fourth decimal place. For example, enter 12.345% as .1235.

Question 7

Ebenezer Scrooge has invested 42% of his money in asset A and the remainder in asset B. The returns on asset A have a standard deviation of 18.34% and the returns on asset B have a standard deviation of 11.69%. The correlation between returns is 0.26. What is the standard deviation of Scrooge's portfolio?

Enter your answer as a decimal rounded to the nearest fourth decimal place. For example, enter 12.345% as .1235.

Question 8

The annual returns for three years for stock B were 6.0%, 14.2%, and 4.5%. Annual returns for three years for the market portfolio were 5.7%, 13.4%, and 2.2%. Calculate the beta for the stock.

Enter your answer rounded to the second decimal place. For example, enter 1.234 as 1.23.

Question 9

You're constructing a portfolio comprised of two assets, X and Y. Asset X generates an expected annual return of 10.1%. Asset Y generates an expected annual return of 5.1%. If you want your portfolio to have an expected return of 7.9%, then how much (i.e., what percentage of your funds) should in vest in Asset X?

Enter your answer as a decimal rounded to the nearest fourth decimal place. For example, enter 12.345% as .1235.

Question 10

Janet wants to construct a portfolio comprised of an index fund and U.S. Treasury bills. The index fund as an expected annual return of 9.31% and the Treasury bills have an expected annual return of 1.09%. The index fund has a standard deviation of 17.39% and the Treasury bills have a standard deviation of 0%. Additionally, there is no correlation between index fund returns and Treasury bill returns.

If Janet wants to construct a portfolio to generate an expected annual return of 8% using this index fund and Treasury bills, then what will be her portfolio's standard deviation?

Enter your answer as a decimal rounded to the nearest fourth decimal place. For example, enter 12.345% as .1235.