An asset has an average return of 10.73 percent and a standard deviation of 20.70 percent. What range of returns should you expect to see with a 95 percent probability?    Multiple Choice   −9.97% to 31.43%   −51.37% to 72.83%   −30.67% to 52.13%   −20.32% to 41.78%   −9.97% to 11.49%

Q: alternatives с D B Alternatives alternatives have the following returns and standard deviations of…

A: The coefficient of variation (CV) is a statistical measure used to measure the relative variability…

Q: A security has an average return of 10% and a standard deviation of 03. If the security is normally…

A: A 95% confidence interval is a statistical range that is used to estimate the range within which a…

Q: Assume that the short-term risk-free rate is 3%, the market index S&P500 is expected to pay returns…

A: To calculate expected return CAPM is used. CAPM stands for capital asset pricing model.

Q: You are going to invest in Asset J and Asset S. Asset J has an expected return of 10.8 percent and a…

A:

Q: An investment has a 20% chance of producing a 25% return, a 60%chance of producing a 10% return, and…

A: Computation:

Q: s NOT correlated with the S&P500. Asset B pays on average 8%, also has standard deviation equal to…

A:

Q: Dependent Variable: PORTFOLIO Method: Least Squares Sample: 1991M01 2009M12 Included observations:…

A: The objective of the question is to determine if the given model is statistically significant and to…

Q: Which of these two companies is best for investment?  Trend Probability Rate of Retrun (Company A)…

A: We need to calculate expected return rate of return from investment by multiplying the probability…

Q: Asset Y has a beta of 1.2. The risk-free rate of return is 6 percent, while the return on the market…

A: In this question we need to compute the asset's market risk premium. We can solve this question…

Q: Over a particular period, an asset had an average return of 6.7 percent and a standard deviation of…

A: The expected return is the gain or loss that a trader predicts on a particular previous rate of…

Q: If the risk-free rate is 10.2% and the market risk premium is 4.4%, what is the required return for…

A: In the Given question we require to calculate the required return for the market from the following…

Q: Coefficient of Variation

A: Please note that I'm assuming that we need to calculate the Coefficient of variation of the 2…

Q: Calculate the standard deviation of the following returns.  Year       Return 1             0.25…

A: Explanation : Standard deviation is measure the risk which is involved in earning of that particular…

Q: Over a particular period, an asset had an average return of 12.1 percent and a standard deviation of…

A: Expected return of an asset is the profitability of investing in that asset. It is the percentage of…

Q: Multiple Choice O O O -24.34% -12.61% -59.53% -36.07%

A: Mean return=10.85%Standard deviation=23.46%Find out maximum loss for 2.5% probability.

Q: The information about asset X and Y are given as follows: Expected Standard Asset Return Deviation…

A: Here, Expected Return of X is 10% Standard Deviation X IS is 4% Expected Return of Y is 15% Standard…

Q: What range of returns should you expect to see with a 99.7 percent probability on an asset that has…

A: Investors and analysts assess the performance of specific assets, portfolios, or whole markets using…

Q: For minimum variance portfolio,the weight of Asset A1 Ltd in two asset portfolio ,having correlation…

A:

Q: ver a particular period, an asset had an average return of 11.6 percent and a standard deviation of…

A: The expected range of returns refers to the range in which an investor expects the returns from an…

Q: find the trynors ratio for q and compare it to treynor ratio for m does this analysis indicate…

A: Here,Beta q is 1.25rf is 2%rm is 12%rq is 13.5%

Q: Calculate volatility and lower partial moment using the data below. ( , ) Target return is 0% Rate…

A: No. Return Return - mean 6.95 (return - mean)2 1 8.3 1.35 1.82 2 6.8 -0.15 0.02 3 -2.4 -9.35…

Q: Over a particular period, an asset had an average return of 5.8 percent and a standard deviation of…

A: Expected return of an asset is the profitability of investing in that asset. It is the percentage of…

Q: Which of the following assets dominates Asset X that has 9% expected return andstandard deviation of…

A: The objective of the question is to identify which asset among Asset V, Asset R, Risk-free asset,…

Q: An asset has an average return of 11.03 percent and a standard deviation of 21.10 percent. What…

A: Average return = 11.03%Standard deviation = 21.10%Probability = 95%,Z score equivalent to 95%…

Q: Give the following true population SIM (not estimated SIM): Ri-Rf=0.1%+1.2(Rb-Rf)+ϵi When estimating…

A: The Single Index Model is a statistical technique used in finance to analyze and predict the…

Q: Assume that Rf = 6 percent and the market risk premium (Km - Rf) is 7.0 percent. Compute Kj for the…

A: In this question we require to compute the Kj i.e. expected return of a stock where, Rf = 6%  Market…

Q: Expected return and standard deviation a.  What is the expected return of asset​ b?

A: The expected return is the return that an investor expects on its investment under various…

Q: Asset X has an expected return of 6% and a variance of 0.001. Asset Y has an expected return of 12%…

A: Sharp ratio is calculated as shown below.

Q: An investment shows a positive net present value at an 8% discount rate and a negative net present…

A: Capital budgeting indicates the evaluation of the profitability of possible investment and projects…

Q: An asset has a 50% chance of a 16% rate of return and a 50% chance of a -16% rate of return (notice…

A: We invest in assets with the expectation to generate returns from that asset. For instance,…

Q: If you want to have 14,000 at the end of year 5, how much should you have to save each year if the…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Suppose the returns on an asset are normally distributed. The historical average annual return for…

A: Variables in the question:Average annual return for the asset=5.2%Standard deviation=10.6%

Q: Over a particular period, an asset had an average return of 5.3 percent and a standard deviation of…

A: Average return = 5.3% Standard deviation = 8.1%   If you expect to see 95% of the time for this…

Q: What is the coefficient of variation (CV) of an asset with expected return 5% and standard deviation…

A: The coefficient of variation is used by investors in determining how much risk or volatility is…

Q: If you have a weighted value of 12.8% and a return of 16% what is the probability? a. 10% 129/

A: Given: Weight = 12.8% Return = 16%

Q: n asset has an average return of 11.51 percent and a standard deviation of 24.45 percent. What is…

A: Investment in the stock market is subjected to risk and there are many possible outcomes and chance…

Q: An asset has an average return of 11.45 percent and a standard deviation of 24.36 percent. What is…

A: In order to make well-informed judgments concerning risk and return, investors frequently analyze…

Q: 16. What is the total variance of the following portfolio including 2 assets invested in the ratio…

A: Formula to be used: Portfolio variance=(WA2 x σ2A)+(WB2 x σ2B)+ (2 x WA x σA x WB x σB x r) Data…

Q: Asset A has 3 units of exposure to factor 1 risk and 1 unit of exposure to factor 2 risk and has…

A: We will first take the value of the first factor as x and the second factor as y, then we will solve…

Q: Suppose the returns on a particular asset are normally distributed. Also suppose the asset had an…

A: Given: Particulars Return   Expected return 11.50%   Standard deviation Particulars Return…

Q: Given Portfolio 1 Expected Return= 0.15 Portfolio variance = 0.001 Standard Deviation = 0.0316…

A: A portfolio is the combination of various financial assets into one basket with the aim to earn…

Q: If benchmark Sharpe’s Ratio is 1.5, return of the market is 13% and, risk free rate is 4%, standard…

A:

Q: a) XVW Ltd. currently holds a portfolio containing two assets; Asset 1 and Asset 2. If Er1 = 0.25,…

A: A Minimum Variance Portfolio (MVP) is a concept in finance and investment that refers to a portfolio…