Stock Fund Analysis

Fund F has been investing in stocks and bonds. You are evaluating the performance of Fund F by comparing its performance with the performance of an appropriate benchmark portfolio B. The performance and weights of F and B over the last year are given in the table below: Asset Class Weight in F Weight in B 0.6 Stocks 0.5 Bonds 0.5 Attribute the performance of Fund F against benchmark portfolio B in the stock class. What is the attribution due to the asset allocation in the stock class? What is the attribution due to the security selection in the stock class? 0.4 Return from F O a. -0.005, -0.008 O b. 0.003; 0.004 O c. 0.012, 0.008 O d. 0.008; 0.012 10% Return from B 3% 8% 5%

Suppose you manage an equity fund with the following securities. Use the following data to calculate the information ratio of each stock.                           Input Data Vogt Industries Isher Corporation Hedrock, Incorporated       Alpha 0.012 0.006 0.016       Beta 0.277 1.015 1.630       Standard Deviation 0.156 0.168 0.181       Residual Standard Deviation 0.117 0.048 0.113                     Required:             Using the information in the table above, please calculate the information ratio for each stock.                           (Use cells A5 to D8 from the given information to complete this question.)                             Vogt Industries Isher Corporation Hedrock, Incorporated       Information Ratio

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Suppose you manage an equity fund with the following securities. Use the following data to help build an active portfolio.                   Input Data Vogt Industries Isher Corporation Hedrock, Incorporated   Alpha 0.012 0.006 0.016   Beta 0.277 1.015 1.630   Standard Deviation 0.156 0.168 0.181   Residual Standard Deviation 0.117 0.048 0.113   Information Ratio 0.1026 0.1250 0.1416   Alpha/Residual Variance 0.877 2.604 1.253             Market Data S&P 500 Treasury Bills     Expected Raturn 12.00% 2.50%     Standard Deviation 20.00% 0.00%               Required:         Using the information in the table above, please first calculate the initial weight of each stock in an active portfolio, using the Treynor Black approach. Then adjust each weight for beta.           (Use cells A5 to D14 from the given information to complete this question.)                   Treynor-Black Model Vogt Industries Isher Corporation Hedrock, Incorporated…

My class is called Quantitative analysis, so I believe it falls under Statistics.  My question is:  As a financial advisor, you are assigned a new client who is considering investing in one of two stocks, A or B. The table below shows information about the performance of stocks A and B last year.   Return Standard Deviation Stock A 15 % 8.3% Stock B 14% 2.1% As a financial advisor, are there factors other than return and risk that should be considered in making this decision? Based on these factors, what stock would you recommend to the client? What reasons will you convey to your client to justify your decision in recommending this stock? How will this recommendation impact the client? I just need help with part 4

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. Portfolio beta and weights Brandon is an analyst at a wealth management firm. One of his clients holds a $5,000 portfolio that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Investment Allocation Beta Standard Deviation Atteric Inc. (AI) 35% 0.750 38.00% Arthur Trust Inc. (AT) 20% 1.500 42.00% Li Corp. (LC) 15% 1.100 45.00% Baque Co. (BC) 30% 0.300 49.00%   Brandon calculated the portfolio’s beta as 0.818 and the portfolio’s required return as 8.4990%. Brandon thinks it will be a good idea to reallocate the funds in his client’s portfolio. He recommends replacing Atteric Inc.’s shares with the same amount in additional shares of Baque Co. The risk-free rate is 4%, and the market risk premium is 5.50%.   Suppose instead of replacing Atteric Inc.’s stock with Baque Co.’s stock, Brandon considers replacing Atteric Inc.’s stock with the equal…

(Using the CAPM to find expected returns) Sante Capital operates two mutual funds headquartered in Houston, Texas. The firm is evaluating the stock of four different firms for possible inclusion in its fund holdings. As part of their analysis, Sante's managers have asked their junior analyst to estimate the investor-required rate of return on each firm's shares using the CAPM and the following estimates: The rate of interest on short-term U.S. Treasury securities is currently 3.5 percent, and the expected return for the market portfolio is 9.5 percent. What should be the expected rates of return for each investment? Security ABCO D Beta 1.57 0.76 1.35 0.89 a. The expected rate of return for security A, which has a beta of 1.57, is %. (Round to two decimal places.)

You are a portfolio manager. John Smith, one of your clients, by providing you the following formation requested you to calculate standard deviation of Shah Corporation stock and High Fly Corporation.  Based on the given information, what is the standard deviation of the returns on i) Shah Corporation and ii) High Fly Corporation? Which stock has higher standard deviation? Why? Please provide your reasoning. Please show all the calculations by which you came up with the final answer.

Give typing answer with explanation and conclusion  In evaluating the performance of your Canadian equity mutual fund, the most appropriate comparison would be its performance relative to the   Question 57 options:   Dow Jones Industrial Average.   S&P 500 index.   S&P/TSX composite index.   cost of living (CPI) index.

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You are managing a mutual fund with the following stocks: Stock Investment Beta A $1,266 -0.2 B $1,222 -0.9 What is the beta for this mutual fund (i.e. what is the portfolio beta)? answer format: show your answer to 1 decimal place.

Can you please answer and kindly show detailed human working.

You are a financial investor who actively buys and sells in the securities market. Now you have a portfolio, including four shares: $7,500 of Share A, $4,800 of Share B, $5,700 of Share C, and $2,500 of Share D.   Required: Compute the weights of the assets in your portfolio?  If your portfolio has provided you with returns of 7.7%, 10.5%, - 8.7% and 14.2% over the past four years, respectively. Calculate the geometric average return of the portfolio for this period?  Assume that expected return of the stock A in your portfolio is 13.2%. The risk premium on the stocks of the same industry are 6.8%, beta of this stock is 1.3. Calculate the risk-free rate of return using Capital market pricing model (CAPM). ? You have another portfolio that comprises of two shares only: $500 Tesla shares and $700 Eagle shares. Below is the data of your portfolio:   Tesla Eagle Expected return 13% 20% Standard Deviation of return 20% 45% Correlation of coefficient (p) 0.4…

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Consider that 2 investment funds exist. ABC Fund(invested in 50% normal stock and 50% risky bonds) and 123 Fund(invested in 25% High risk stock and 75% normal bonds).   Assume you have the following historical data of annual returns:                                                 Return                  S.D.                                                        Normal Stock                     8%                          20% Risky Bonds                        10%                        35% High Risk Stock                  14%                        40% Normal Bonds                   6%                          10%   A)  If Normal Stock and Risky Bonds have a correlation coefficient of 0.4            and High Risk Stock and Normal Bonds have correlation coefficient of 0 .2. Find the expected return and standard deviation of each Fund. B) Consider that 2 investment funds exist. ABC Fund(invested in 50% normal stock and 50% risky bonds) and 123 Fund(invested in 25% High risk stock and…

Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below. (Click on the following icon in order to copy its contents into a spreadsheet.) Stock Golden Seas Jacobs and Jacobs MAG PDJB Price/Share ($) 閘12 21 46 12 Number of Shares Outstanding (millions) 1.14 1.46 26.23 7.91