State: Probability: Boom Normal Slowdown 0.30 ABC Returns: 0.14 0.40 0.09 0.20 0.03 Recession 0.10 -0.02 Based on the information provided above, calculate the following:
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The expected returns of a portfolio are influenced by several factors that investors should consider when
constructing and managing their investment portfolios. discusses
the factors that affect expected returns of a portfolio.
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- Boom Nasional Berhad, find the standard deviation. PROBABILITY RETURN 0.35 8% 0.20 3% 0.20 20% 025 15%To 4-digit accuracy, what is the Mean of IWM return and the Mean of EEM return?Given the following probability distribution of returns: Probability Return 0.1 -15.0% 0.25 0.0% 0.3 8.5% 0.25 12.0% 0.1 32.0% what is the expected return?
- the yeild curve at the present time (t=0)Consider the following time series: Construct a time series plot. What type of pattern exists in the data? Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. What is the forecast for t = 8?Example 3 Inns oont alafrA Following Example 2, consider a porfolio with three assets S1, S2 and S3 which have expected rates of return 0.1,0.15 and 0.2 respectively, and variance-covariance matrix odni tanoma bszt a aitevi ot botoly 0.1 0.1 -0.1 0.1 0.2 0.1 ololles V = -0.1 0.1 0.6 vo ) isaas sod slais a at gaiteoo ottg ndi oda vodT (aldanoitesup als ot-lais wod ibuadala abnod on a) What is the optimal portfolio when up = worod of sidad = 0.2. adt yhalinie ini ba moe ja SOLUTION lo ano ot b) Use this piece of information and the earlier optimal portfolios from la aao e. Example 2 to find the quadratic equation relating of and up. ni bstni sd SOLUTION tar oad o bo s e) Hence draw a plot of the solutions, and identify the frontier port- Ldon to slar folios. it SOLUTION ods Btvni gatela dt
- Complete the table below using CAPM model Case Expected return RF RM Beta A ? % 10% 18% 0.8The delta of a call optio is very much in-the-money is likely close to a. 0 delta b. 100 deltaUse the following information to answer the question. Based on above data, determine the expected return? Select one: a. 12.06% b. 19% c. 17.35% d. 16.72%
- Can you explain, when calculating the mean why the probability is included in the calculation? eg when you're using excel: (0.2*7) + (0.1*7) + (0.3*7) + (0.3*7) + (0.1*7) = 7%4. Given the probability and returns associated with each state, what is the expected return? What is the standard deviation? Probability Return 0.1 -0.5 0.2 -0.05 0.4 0.16 0.2 0.25 0.1 0.6You are given the following possible returns for Security J. Given this information, determine the coefficient of variation for Security J State Probability G 1 30% 10% 25% 18% 14% 24% 27% 2 3 4 O 0.3907 O 0.3847 O 0.3721 O 0.4040 00.3597 31%