You have a portfolio with a standard deviation of 25% and an expected return of 18%. You are consi the following table. If after adding the stock you will have 20% of your money in the new stock and 80 existing portfolio, which one should you add? Stock A Stock B Expected Return 14% 14% Standard Deviation 21% 17% Correlation with Your Portfolio's Returns 0.2 0.6 Standard deviation of the portfolio with stock A is%. (Round to two decimal places.)
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- You have a portfolio with a standard deviation of 24% and an expected return of 19%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Standard deviation of portfolio with stock A is ? Expected Return Standard Deviation Correlation with Your Portfolio's Returns Stock A 12 % 22 % 0.2 Stock B 12 % 17 % 0.7You have a portfolio with a standard deviation of 29% and an expected return of 19%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add? Expected Return Standard Correlation with Deviation Your Portfolio's Returns Stock A 16% 23% 0.4 Stock B 16% 16% 0.5 Standard deviation of the portfolio with stock A is %. (Round to two decimal places.) Standard deviation of the portfolio with stock B is %. (Round to two decimal places.) Which stock should you add and why? (Select the best choice below.) A. Add B because the portfolio is less risky when B is added. B. Add A since the portfolio is less risky when A is added. C. Add either one because both portfolios are equally risky.Consider an investment portfolio that consists of three different stocks, with the amount invested in each asset shownbelow. Assume the risk-free rate is 2.5% and the market risk premium is 6%. Use this information to answer thefollowing questions.Stock Weights BetasChesapeake Energy 25% 0.8Sodastream 50% 1.3Pentair 25% 1.0a) Compute the expected return for each stock using the CAPM and assuming that the stocks are all fairly priced.b) Compute the portfolio beta and the expected return on the portfolio.c) Now assume that the portfolio only includes 50% invested in Pentair and 50% invested in Sodastream (i.e., a twoassetportfolio). The yearly-return standard deviation of Pentair is 48% and the yearly-return standard deviation ofSodastream is 60%. The correlation coefficent between Pentair’s returns and Sodastream’s returns is 0.3 What is theexpected yearly-return standard deviation for this portfolio?
- You have a portfolio with a standard deviation of 23% and an expected return of 17%. You are considering adding one of the two stocks in the following table: If after adding the stock you will have 25% of your money in the new stock and 75% of your money in your existing portfolio, which one should you add? Standard deviation of the portfolio with stock A is%. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Stock A Stock B Expected Return 16% 16% Print Standard Deviation 23% 18% C... Done Correlation with Your Portfolio's Returns 0.3 0.8 - XYou have a portfolio with a standard deviation of 22% and an expected return of 18%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Stock A Stock B Expected Return 13% 13% Standard Deviation 21% 16% Correlation with Your Portfolio's Returns CO 0.2 0.6 Standard deviation of the portfolio with stock A is%. (Round to two decimal places.) Standard deviation of the portfolio with stock B is%. (Round to two decimal places.) Which stock should you add and why? (Select the best choice below.) OA. Add A because the portfolio is less risky when A is added. B. Add B because the portfolio is less risky when B is added. C. Add either one because both portfolios are equally risky.You have a portfolio with a standard deviation of 25% and an expected return of 17%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 25% of your money in the new stock and 75% of your money in your existing portfolio, which one should you add? Stock A Stock B Expected Return 16% 16% Standard Deviation 24% 19% Correlation with Your Portfolio's Returns 0.4 0.7 Standard deviation of the portfolio with stock A is%. (Round to two decimal places.)
- You have a portfolio with a standard deviation of 20% and an expected return of 18%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Stock A Stock B Expected Return 13% 13% Standard Deviation 23% 18% Correlation with Your Portfolio's Returns 0.3 0.7 Standard deviation of the portfolio with stock A is%. (Round to two decimal places.) Standard deviation of the portfolio with stock B is%. (Round to two decimal places.) Which stock should you add and why? (Select the best choice below.) OA. Add B because the portfolio is less risky when B is added. OB. Add A because the portfolio is less risky when A is added. OC. Add either one because both portfolios are equally risky.You have a portfolio with a standard deviation of 22% and an expected return of 20%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 25% of your money in the new stock and 75% of your money in your existing portfolio, which one should you add? Stock A Stock B Expected Return 16% 16% Standard Deviation 21% 19% Correlation with Your Portfolio's Returns 0.2 0.7 Standard deviation of the portfolio with stock A is. (Round to two decimal places) CEEENYou have a portfolio with a standard deviation of 23% and an expected return of 15%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 25% of your money in the new stock and 75% of your money in your existing portfolio, which one should you add? Stock A Stock B Expected Return 15% 15% Standard Deviation 24% 20% Standard deviation of the portfolio with stock A is Correlation with Your Portfolio's Returns 0.2 0.6 %. (Round to two decimal places.) %. (Round to two decimal places.) Standard deviation of the portfolio with stock B is Which stock should you add and why? (Select the best choice below.) Text A. Add A because the portfolio is less risky when A is added. B. Add B because the portfolio is less risky when B is added. OC. Add either one because both portfolios are equally risky. Next
- You have a portfolio with a standard deviation of 20% and an expected return of 15%. You are considering adding one of the two stocks in the following table: If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Standard deviation of the portfolio with stock A is Standard deviation of the portfolio with stock B is 18.19 %. (Round to two decimal places.) Which stock should you add and why? (Select the best choice below.) A. Add A because the portfolio is less risky when A is added. B. Add B because the portfolio is less risky when B is added. C. Add either one because both portfolios are equally risky. Data table 16.46 %. (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Stock A Stock B Expected Return 14% 14% Standard Deviation 21% 18% Correlation with Your Portfolio's Returns 0.2 0.7 - XYou construct a two-stock portfolio using stock A and stock B. You invest $700 in stock A and $300 in stock B. The return standard deviation of stock A is 15%, that of stock B is 20%, and the return correlation coefficient between stock A and stock B is 0.6. The return standard deviation of your portfolio is _____. 13.57% 14.89% 16.50% 17.50%You have a portfolio with a standard deviation of 30% and an expected return of 18%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add? Stock A Stock B Expected Return 15% 15% Standard Deviation 25% 20% Correlation with Your Portfolio's Returns XXX 0.2 0.6 Standard deviation of the portfolio with stock A is 25.48%. (Round to two decimal places.) Standard deviation of the portfolio with stock B is 26.59 %. (Round to two decimal places.) Which stock should you add and why? (Select the best choice below.) A. Add B because the portfolio is less risky when B is added. B. Add A because the portfolio is less risky when A is added. OC. Add either one because both portfolios are equally risky.