6 p6/assessment/take/launchjsp?course assessment_id= 251813_18icourse_id=_85849 1&content_id= 4376. oQUESTION 8The standard deviation of any portfolio of risky assets is equal to the weighted average of the individual assets'standard deviations.O TrueO FalseQUESTION 9You invest $30,000 in a stock with an expected rate of return of 15% and a standard deviation of 25%. You alsochoose to invest $12,000 in a risk free asset, which provides a 4% expected rate of return. Find the standarddeviation of your two asset portfolio. Round intermediate steps to four decimals.O 0714O 0319O.1786Cannot be determinedQUESTION 10Find the return of the portfolio mentioned in the previous question. Round intermediate steps and your finalanswer to four decimals. Enter your answer in decimal format (ex: XXXX).

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Answered: The standard deviation of any portfolio…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 9PROB

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Assume that you have opportunity to invest BD 25,000 in one of the following common stock. Year Stock (A) Stock (B) 2019 12% 9% 2018 15% 13% 2017 18% 17% 2016 21% 21% Then you plan to invest in both stocks (A and B) as a portfolio investment and the weight of investment will be as follow: Stock Weight 55% 45% Correlation Required: a. Calculate the expected return for both stock Calculate the expected risk based on standard deviation for both stock Calculate the expected risk based on coefficient variation (CV) Interpret which stock that you would like to invest based on risk and return concept Calculate the expected return of portfolio Calculate the expected risk of portfolio based on standard deviation b. c. d. e. Dell Update f. 8 updates are Install
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Qn4: Assume a two-stock portfolio created with $50,000 is invested in both HT and Collections. The expected returns are given below: Calculate the portfolio's return for each state of economy and fill them in the last column, under "Portfolio" (Hint: The portfolio's expected return is a weighted average of the returns of the portfolio's component assets). Calculate the portfolio's expected return (Hint: You have to incorporate the probability distribution of each state of economy). Calculate the portfolio's standard deviation. Economy Recession Below average Average Above average Boom Prob. HT 0.1 -27.0% 0.2 -7.0% 0.4 15.0% 0.2 30.0% 0.1 45.0% Coll 27.0% 13.0% 0.0% -11.0% -21.0% Portfolio
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The standard deviation of any portfolio of risky assets is equal to the weighted average of the individual assets' standard deviations. O True O False