K Calculate the 95 % confidence intervals for the four different investments included in the following table S&P TSX Composite Index Average Return (%) Standard Deviation of Returns (%) 11.55 17:34 The 95% confidence interval of the S&P TSX Composite Index is between % and % (Round to two decimal places. Use ascending order.) COLLE S&P 500 Index in CAD 9.05 17.24 Long-Term Gov't of Canada Bonds 7.81 9.58 Canadian Treasury Bills 5.24 4.35

K Calculate the 95 % confidence intervals for the four different investments included in the following table S&P TSX Composite Index Average Return (%) Standard Deviation of Returns (%) 11.55 17:34 The 95% confidence interval of the S&P TSX Composite Index is between % and % (Round to two decimal places. Use ascending order.) COLLE S&P 500 Index in CAD 9.05 17.24 Long-Term Gov't of Canada Bonds 7.81 9.58 Canadian Treasury Bills 5.24 4.35

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Calculate the 95% confidence intervals for the four different investments included in the following table. S&P TSX Composite Index Average Return (%) Standard Deviation of Returns (%) 10.94 16.43 The 95% confidence interval of the S&P TSX Composite Index is between % and % (Round to two decimal places. Use ascending order) CLUB S&P 500 Index in CAD 8.53 16.93 Long-Term Gov't of Canada Bonds 7.83 11.48 Canadian Treasury Bills 5.98 4.35
D4) Finance Consider a portfolio composed of shares AAA and BBB as shown in the following table. At 95% confidence level, select the correct statement AAA BBB Value 2,470,000 785,750 % investment 76% 24% Volatilities 2.32 % 2.69 % Correlation for both assets 0.65 Portfolio Value for both assets 3,255,750 a) The Component VaR of the Asset AAA is 92,223 and the component VaR of the Asset BBB is 27955.69 b) The contribution to the VaR of the Asset AAA is 77% and the one of the Asset 2 is 23% c) Both answers are correct
Astromet is financed entirely by common stock and has a beta of 1.20. The firm pays no taxes. The stock has a price-earnings multiple of 11.0 and is priced to offer a 10.9% expected return. The company decides to repurchase half the common stock and substitute an equal value of debt. Assume that the debt yields a risk-free 4.6%. Calculate the following: Required: a. The beta of the common stock after the refinancing b. The required return and risk premium on the common stock before the refinancing c. The required return and risk premium on the common stock after the refinancing d. The required return on the debt e. The required return on the company (i.e, stock and debt combined) after the refinancing If EBIT remains constant: f. What is the percentage increase in earnings per share after the refinancing? g-1. What is the new price-earnings multiple? g-2. Has anything happened to the stock price? Complete this question by entering your answers in the tabs below. Reg A to E Reg F to G2…
Calculate the 95% confidence intervals for the four different investments included in the following table. The 95% confidence intervals for each of these investments, individually, is between % and % Average Return (%) Standard Deviation of Returns (%) S&P TSX Composite Index 11.81 15.99 S&P 500 Index in CAD 8.81 17.48 Long-Term Gov't of Canada Bonds 8.31 11.42 Canadian Treasury Bills 5.83 3.66
please dont provide annswer in image format thank you Question content area top Part 1 Calculate the 95% confidence intervals for the four different investments included in the following table. S&P TSX Composite Index S&P 500 Index in CAD Long-Term Gov't of Canada Bonds Canadian Treasury Bills Average Return (%) 10.31 11.84 7.38 5.39 Standard Deviation of Returns (%) 16.24 18.27 10.09 4.21 Question content area bottom Part 1 The 95% confidence interval of the S&P TSX Composite Index is between enter your response here% and enter your response here%. (Round to two decimal places. Use ascending order.)
The expected return and standard deviation of a portfolio that is 60 percent invested in 3 Doors, Incorporated, and 40 percent invested in Down Company are the following: Expected return, E(R) Standard deviation, o Down 3 Doors, Incorporated Company. 118 12% 54 40 What is the standard deviation if the correlation is +1? 0? -1? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Correlation +1 Correlation 01 Correlation-1 Standard Deviation 2.00% 2.00% 2.00 %
Two investments, X and Y, have the characteristics shown below. E(X) = $70, E(Y)3D$120, o =7,000, a = 14,000, and ory =7,500 If the weight of portfolio assets assigned to investment X is 0.3, compute the a. portfolio expected return and b. portfolio risk. a. If the weight of portfolio assets assigned to investment X is 0.3, the portfolio expected retum is $ (Type an integer or a decimal.) b. If the weight of portfolio assets assigned to investment X is 0.3, the portfolio risk is approximately $. (Round to two decimal places as needed.)
The expected return and standard deviation of a portfolio that is 50 percent invested in 3 Doors, Incorporated, and 50 percent invested in Down Company. are the following: Expected return, E(R) Standard deviation, o 3 Doors, Incorporated 14% 42 Correlation +1 Correlation 0 Correlation-1 What is the standard deviation if the correlation is +1? 0? -1? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Standard Deviation 33.61 % Down Company 10% 31 %
Given the returns and probabilities for the three possible states listed below, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 8.10 percent and 11.60 percent, respectively. (Round answer to 4 decimal places, e.g. 0.0768.) Good OK Poor Covariance Probability 0.22 0.60 0.18 Return on Stock A 0.30 0.10 -0.25 Return on Stock B 0.50 0.10 -0.30
Which asset in the following table has the most market risk (also known as systematic or non- diversifiable risk)? Asset Return Beta Standard Deviation Asset A 11% 0.95 35% Asset B 13% 1.00 35% Asset C 9% 1.20 30% 1.) Asset C 2.) All three Assets 3.) Asset B 4.) Asset A and Asset B 5.) Asset A
The expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Inc., and 70 percent invested in Down Co. are the following: 3 Doors, Inc. Down Co. Expected return, E(R) Standard deviation, o 56 13 % 12 % 36 What is the standard deviation if the correlation is +1? 0? -1? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. )
Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 3.8% + 1.25RM + eA RB = –1.8% + 1.60RM + eB σM = 18%; R-squareA = 0.24; R-squareB = 0.18 What are the covariance and correlation coefficient between the two stocks? (Do not round intermediate calculations. Calculate using numbers in decimal form, not percentages. Round your answers to 4 decimal places.)

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