Using the data in the following table, calculate the volatility (standard deviation) of a portfolio that is 68% invested in stock A and 32% in stock B. The volatility of the portfolio is ☐ %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A 2010 2011 2012 2013 2014 2015 -6% 20% 3% - 1% 5% 15% Stock B 17% 4% 1% -1% -12% 25% Print Done -

Using the data in the following table, calculate the volatility (standard deviation) of a portfolio that is 68% invested in stock A and 32% in stock B. The volatility of the portfolio is ☐ %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A 2010 2011 2012 2013 2014 2015 -6% 20% 3% - 1% 5% 15% Stock B 17% 4% 1% -1% -12% 25% Print Done -

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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Similar questions

Using the data in the following table, and the fact that the correlation of A and B is 0.52, calculate the volatility (standard deviation) of a portfolio that is 50% invested in stock A and 50% invested in stock B. (Click on the following icon in order to copy its contents into a spreadsheet.) Realized Returns Year 2008 2009 2010 2011 2012 2013 Stock A -3% 11% 5% -3% ► 2% 9% Stock B 15% 22% 8% - 5% -15% 15% .... The standard deviation of the portfolio is%. (Round to two decimal places.)
Using the data in the following table, calculate the volatility (standard deviation) of a portfolio that is 60% invested in stock A and 40% in stock B. The volatility of the portfolio is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A Stock B 2010 2011 2012 2013 2014 2015 -10% 19% 4% -3% 5% 12% 19% 39% 24% -8% -8% 35% Print Done Х
Using the data in the following table,, estimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. a. Estimate the average return and volatility for each stock. The average return of stock A is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2010 2011 20% 2013 - 1% - 13% Stock A Stock B 20% 12% - 9% Print 2012 8% 9% C Done 2014 4% - 9% 2015 11% 27% - X
Using the data in the following table, E, calculate the volatility (standard deviation) of a portfolio that is 55% invested in stock A and 45% in stock B. The volatility of the p Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A 2010 2011 2012 2013 2014 2015 -14% 11% 4% -10% 2% 12% Stock B 25% 33% 13% -3% -13% 26% Print Done - X
Using the data in the following table, and the fact that the correlation of A and B is 0.62, calculate the volatility (standard deviation) of a portfolio that is 80% invested in stock A and 20% invested in stock B. (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2008 2009 2010 2011 2012 2013 Realized Returns Stock A - 8% 17% 5% - 8% 4% 7% Stock B 17% 39% 11% - 1% - 5% 17% The standard deviation of the portfolio is %. (Round to two decimal places.)
Beta of a portfolio. The beta of four stocks-G, H, I, and J-are 0.42, 0.75, 1.19, and 1.65, respectively. What is the beta of a portfolio with the following weights in each asset: ? What is the beta of portfolio 1? (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Portfolio 1 Portfolio 2 Portfolio 3 Weight in Stock G 25% 30% 10% Weight in Stock H 25% 40% 20% Weight in Stock I 25% 20% 40% Weight in Stock J 25% 10% 30% - X
Using the data in the following table, and the fact that the correlation of A and B is 0.06, calculate the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30% invested in stock B. The return of stock A is ☐ %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Realized Returns Year Stock A Stock B 2017 15% 24% 2018 12% 22% 2019 9% 10% 2020 -4% -4% 2021 4% -3% 2022 11% 22%
Question IV: Suppose S =$100, K =$95, r =8% (continuously compounded), t =1, o =30%, and 8=5%. Use an eight- period lognormal binomial tree to answer the following questions. You can also use Excel for this question. If you do so, please upload the Excel file separately with the detailed calculations. (a) Construct the stock tree. (b) Compute the prices of an European call option. (c) Compute the prices of an American put option.
Consider the three stocks in the following table. P, represents the price at time t, and Q, represents the total shares outstanding at time t. Calculate the rate of return on a price-weighted index of three stocks for the first period (t=0 to t=1). Table 2: Data for Q4 & Q5 Q0 P1 Q1 PO 100 50 105 50 A B 200 100 210 100 C 300 100 250 100
Using the data in the following table,, estimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2010 2011 2013 Stock A - 10% 20% - 5% Stock B 21% 7% - 3% 2012 5% 30% 2014 2% - 8% 2015 9% 25% I
Using the data in the following table,, estimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. a. Estimate the average return and volatility for each stock. The average return of stock A is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A 2010 2011 2012 2013 2014 2015 - 1% 6% 2% -5% 4% 6% Stock B 20% 9% 8% -3% - 5% 21% Print Done ☑ Clear
What is the standard deviation of stock A if it has the following probabilities and rate of returns. Probability Return 0.3 -5% 0.4 14% 0.3 11% a. 9.11% b. 9.40% c. 8.62% d. 8.21%

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