Following is forecast for economic situation and Rachel’s portfolio returns next year, calculate the expected return, variance and standard deviation of the portfolio. (4 marks) State of economy Probability Rate of returns Mild Recession 0.35 - 5% Growth 0.45 15% Strong Growth 0.20 30%

Q: The analysts at FNB forecasted that the return on DJIA index portfolio over the coming year will be…

A: The degree of risk aversion of the average investors can be denoted as Beta. Variance of returns…

Q: The table below gives the historic return over the past five months for the market portfolio and two…

A: Beta (β) quantifies a stock's volatility concerning the overall market. A beta value exceeding 1…

Q: Using the information below to calculate the following monthly returns for the portfolio.…

A: Return is a rate at which investment grows in different periods.

Q: During the year just ended, Anna Schultz's portfolio, which has a beta of 0.91, earned a return of…

A: Beta = 0.91Returns  = 8.4%Risk-free rate = 3.3%Return on market portfolio = 9.1%

Q: A portfolio has an expected annual return of 12.2% and a standard deviation of 18.2%. What is the…

A: Given Information: Annual expected return = 12.2% Annual standard deviation = 18.2%

Q: The risk-free rate is currently 8.4%. Use the data in the accompanying table for the Fio family's…

A: The Sharpe ratio refers to the measure of the risk-adjusted return to ascertain the compensation…

Q: Suppose you invest 40% of your fund in stock A and the other 60% in stock B. If stock A and B are…

A: In the given case, we have provided the probability of each state of economy and the return of each…

Q: The returns to a portfolio over the last 7 years are: Year Portfolio Returns 1 3% 2 2% 3 3% 12% 4 5…

A: To calculate the Sortino ratio, we need to follow these steps:1. Calculate the average return of the…

Q: Portfolio contains of two assets. Asset A has an expected return of 2% and asset B has an expected…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: The returns to a portfolio over the last 5 years are: Year 1 2 3 4 5 Portfolio Returns 6% 9% 3% 12%…

A: The Sharpe Ratio is a measure that helps investors understand the return of an investment compared…

Q: You observe a portfolio for five years and determine that its average return is 12.6% and the…

A: Average Return=12.6%Standard Deviation=19.7%Confidence level =95%Required:Low end of 95% prediction…

Q: Stock Price (S) = 50   Exercise Price (E) = 45   Risk-free rate (r) = 0.06   Variance (sd) =…

A: Here, Spot Price (S0) $           50.00Exercise Price (K) $           45.00Risk Free Rate ( r…

Q: Consider the possible rates of return that Mr. Bernabe might earn next year on a $50,000 investment…

A: Aboitiz's Expected Returns=14% Aboitiz's Standard Deviation=20% ACEN's  Expected Returns=9% ACEN's…

Q: Determine the value of a putnoption using the following information   risk free rate = 6% Time of…

A: Question is based on the concept of put call parity which is a theory in finance that says that…

Q: 5 years of data, you estimate the arithmetic average return for a certain stock to be 5.5% and the…

A: In financial forecasting Blue formula is used to calculate future possible return based on the…

Q: calculate the geometric mean if first year & second year returns are 10% & 15% respectively

A: The Concept of geometric mean is an important and dealing it with numbers because statical Matric…

Q: A portfolio has an expected annual return of 14.9 percent and a standard deviation of 18.5 percent.…

A: The Value at Risk is a metric which measures the extent of losses at the given level of…

Q: vests W0=$10000W0=$10000 on a stock. The monthly return RR follows a normal distribution with mean…

A: Value at risk is related to amount of investment that is at the risk.

Q: lio for five years and determine that its average return is 11.8​%and the standard deviation of its…

A: Value at risk is a metric that measures the magnitude of potential financial losses in a company,…

Q: What is the shape of the yield curve given in the following term structure? What expectations are…

A: Yield curve-It is a line that plots yields of bonds having similar credit quality but having…

Q: outlook for the comin Compute the expected rate of retum E(R) for Lauren Labs. Round your answer to…

A: Expected return is the sum of product between the possible returns and their corresponding…

Q: Assuming the below annual rates of return: Annual Rates of Return: Wamart - 12.36% Coca Cola -…

A: The portfolio return is the overall performance of the portfolio over a certain period of time,…

Q: You want to know how your portfolio in Problem 1 would perform in one year. The following table…

A: The formula for the calculation of expected portfolio return= ∑(Probability of Scenario×Return of…

Q: Jennifer's portfolio experiences the following returns over a three-year period: 12%, -5%, 8%.  What…

A: The geometric average return is a way of calculating the average rate of return on an investment…

Q: Year-to-date, Oracle had earned a -1.44 percent return. During the same time period, Valero Energy…

A: Portfolio return  = ( Weight 1 * Return 1) + ( weight 2 * Return 2) +...(weight n * Return n)

Q: You have a portfolio of three assets at the beginning of the year: Asset 1 is 30% of the portfolio,…

A: The return of portfolio for the year is

Q: Review the excerpted table of historic returns shown below.  The returns have all been annualized…

A: Beta: It means the sensitivity of the stock in comparison to the market.

Q: Forecast profits for 2020 using linear trend. Years Profit 2011 12 2012 18 2013 … 2014 13…

A: We first need to calculate the slope of the time series line. It is given by

Q: ou had the following rates of return for on your portfolio for the last four years: 2019:  -10.1%…

A: The gain or loss realized by an investment portfolio made up of many types of investments is…

Q: Maria has a portfolio consisting of 7 shares of stock A (purchased for $70 per share) and 4 shares…

A: Variance and standard deviations are the measure of risk. If the value for each is higher then it…

Q: Consider historical data showing that the average annual rate of return on the S&P 500 portfolio…

A: Standard deviation is the measure of risk in the stock and standard deviation is measured as square…

Q: Lisa is a graduate student from Holmes Institute who is actively involved in investment in the…

A: RETURN ON PORTFOLIO he rate of return on a portfolio is the ratio of the net gain or loss which a…

Q: Based on the provided data what is the standard deviation of the VOO ETF total returns for the…

A: Standard deviation is the measure of risk and volatility and is measured as deviation from mean…

Q: Bhupatbhai

A: The objective of the question is to calculate the utility levels of each portfolio for an investor…

Q: Your portfolio has provided you with returns of 8.6 percent, 14.2 percent, -3.7 percent, and 12.0…

A: The rate of return that an investor is earning from a particular investment in a particular time…

Q: Consider a client with a 10% return objective. A financial adviser creates a policy statement for…

A: In this case the client's return objective is 10% The financial advisor has crafted strategy for…

Q: Suppose that you want to use the 10-year historical average return on the Index to forecast the…

A: 95% confidence interval can be calculated using the below formula: Standard error is: Standard…

Q: Consider a stock where the current price is Ksh.120, the expected return is 20% per annum, and the…

A: The question is based on the concept of  probability distribution over a year in continuous…