You are examining a portfolio consisting of three stocks. Using the data in the tablea. Compute the annual returns for a portfolio with 25% invested in North Air, 25% invested in West Air, and 50% invested in Tex Oil.b. What is the lowest annual return for your portfolio in part (a)? How does it compare with the lowest annual return of the individual stocks or portfolios in the table above.a. Compute the annual returns for a portfolio with 25% invested in North Air, 25% invested in West Air, and 50% invested in Tex Oil.The annual return for 2014 will be: (Round to two decimal places.)Year2014Year2016North Air21%Year2018North AirThe annual return for 2015 will be: (Round to two decimal places.)Year201929%6%Year2015The annual return for 2016 will be: (Round to two decimal places.)North AirNorth Air West AirWest Air-6%8%North Air-1%West AirNorth Air21%8%6%The annual return for 2017 will be: (Round to two decimal places.)West AirYear2017The annual return for 2018 will be: (Round to two decimal places.)Tex Oil-1%Tex OilWest Air-1%-6%Tex OilWest Air29%-6%Tex Oil8%Portfolio21%PortfolioTex Oil Portfolio29%The annual return for 2019 will be: (Round to two decimal places.)Tex OilPortfolio6%PortfolioPortfolio%%%%%%Data table(Click on the following icon in order to copy its contents into a spreadsheet.)Stock ReturnsYear201420152016201720182019Average ReturnVolatilityNorth Air21%29%6%- 6%- 1%8%9.5%13.2%West Air8%21%6%- 1%Print-6%29%9.5%13.2%Tex Oil- 1%-6%8%21%29%6%9.5%13.2%Done1Portfolio Returns(RN+RW) (Rw+RT)14.5%25.0%6.0%-3.5%-3.5%18.5%19.5%11.8%3.5%7.5%7.0%10.0%11.5%17.5%9.5%4.8%- Xb. What is the lowest annual return for your portfolio in part (a)? How does it compare with the lowest annual return of the individual stocks or portfolios in the table above. (Select all the choices that apply.)A. The portfolio computed in part (a) had its lowest annual return in 2014 (6.75%).B. The portfolio computed in part (a) had its lowest annual return in 2015 (9.50 %).C. This is lower than each individual stock and the other portfolios in the table above as well.D. This is higher than the lowest annual return of each individual stock and the other portfolios in the table above as well.

The annual return of the portfolio refers to the weighted average of the component stocks to find…

You are examining a portfolio consisting of three stocks. Using the data in the table a. Compute the annual returns for a portfolio with 25% invested in North Air, 25% invested in West Air, and 50% invested in Tex Oil. b. What is the lowest annual return for your portfolio in part (a)? How does it compare with the lowest annual return of the individual stocks or portfolios in the table above a. Compute the annual returns for a portfolio with 25% invested in North Air, 25% invested in West Air, and 50% invested in Tex Oil. The annual return for 2014 will be: (Round to two decimal places.) Tex Oil Year 2014 Year North Air 2015 21% The annual return for 2015 will be: (Round to two decimal places.) Year 2018 North Air 29% The annual return for 2016 will be: (Round to two decimal places.) 6% -6% West Air North Air 8% -1% West Air North Air 21% 8% Year North Air 2016 The annual return for 2017 will be: (Round to two decimal places.) Tex Oil West Air 6% West Air -1% Year North Air 2017 The annual return for 2018 will be: (Round to two decimal places.) Tex Oil West Air -6% -1% Tex Oil West Air -6% 29% Tex Oil Portfolio Portfolio 8% 21% Portfolio 29% The annual return for 2019 will be: (Round to two decimal places.) Tex Oil Portfolio 6% Portfolio Portfolio % 96 % % Data table % (Click on the following icon in order to copy its contents into a spreadsheet.) Stock Returns Year 2014 2015 2016 2017 2018 2019 Average Return Volatility North Air 21% 29% 6% -6% - 1% 8% 9.5% 13.2% West Air 8% 21% 6% - 1% A. The portfolio computed in part (a) had its lowest annual return in 2014 (6.75%). B. The portfolio computed in part (a) had its lowest annual return in 2015 (9.50%). C. This is lower than each individual stock and the other portfolios in the table above as well. D. This is higher than the lowest annual return of each individual stock and the other portfolios in the table above as well. Print -6% 29% 9.5% 13.2% Tex Oil - 1% -6% 8% 21% 29% 6% 9.5% 13.2% Done 1 Year 2019 b. What is the lowest annual return for your portfolio in part (a)? How does it compare with the lowest annual return of the individual stocks or portfolios in the table above. (Select all the choices that apply.) Portfolio Returns 1 (R₁+RW) = (Rw+RT) 14.5% 25.0% 6.0% -3.5% -3.5% 18.5% C 9.5% 11.8% 3.5% 7.5% 7.0% 10.0% 11.5% 17.5% 9.5% 4.8% X

You are examining a portfolio consisting of three stocks. Using the data in the table a. Compute the annual returns for a portfolio with 25% invested in North Air, 25% invested in West Air, and 50% invested in Tex Oil. b. What is the lowest annual return for your portfolio in part (a)? How does it compare with the lowest annual return of the individual stocks or portfolios in the table above a. Compute the annual returns for a portfolio with 25% invested in North Air, 25% invested in West Air, and 50% invested in Tex Oil. The annual return for 2014 will be: (Round to two decimal places.) Tex Oil Year 2014 Year North Air 2015 21% The annual return for 2015 will be: (Round to two decimal places.) Year 2018 North Air 29% The annual return for 2016 will be: (Round to two decimal places.) 6% -6% West Air North Air 8% -1% West Air North Air 21% 8% Year North Air 2016 The annual return for 2017 will be: (Round to two decimal places.) Tex Oil West Air 6% West Air -1% Year North Air 2017 The annual return for 2018 will be: (Round to two decimal places.) Tex Oil West Air -6% -1% Tex Oil West Air -6% 29% Tex Oil Portfolio Portfolio 8% 21% Portfolio 29% The annual return for 2019 will be: (Round to two decimal places.) Tex Oil Portfolio 6% Portfolio Portfolio % 96 % % Data table % (Click on the following icon in order to copy its contents into a spreadsheet.) Stock Returns Year 2014 2015 2016 2017 2018 2019 Average Return Volatility North Air 21% 29% 6% -6% - 1% 8% 9.5% 13.2% West Air 8% 21% 6% - 1% A. The portfolio computed in part (a) had its lowest annual return in 2014 (6.75%). B. The portfolio computed in part (a) had its lowest annual return in 2015 (9.50%). C. This is lower than each individual stock and the other portfolios in the table above as well. D. This is higher than the lowest annual return of each individual stock and the other portfolios in the table above as well. Print -6% 29% 9.5% 13.2% Tex Oil - 1% -6% 8% 21% 29% 6% 9.5% 13.2% Done 1 Year 2019 b. What is the lowest annual return for your portfolio in part (a)? How does it compare with the lowest annual return of the individual stocks or portfolios in the table above. (Select all the choices that apply.) Portfolio Returns 1 (R₁+RW) = (Rw+RT) 14.5% 25.0% 6.0% -3.5% -3.5% 18.5% C 9.5% 11.8% 3.5% 7.5% 7.0% 10.0% 11.5% 17.5% 9.5% 4.8% X

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 13P

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