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An investor has the following expectations on the performance of Stock X and Stock Y: Probability Scenario Returns (6) Stock X Stock Y 0.20 Good 50% 14% 0.50 Average 30% 66 0.30 Bad -10% 6% Estimate the portfolio return with an allocation of 70:30 (XY) in the two stocks. Select one: O a. 11.92% ОБ. 14.80% Oc 32.00% Od. 17.68% Following Quession 18, estimate the correlasion coefficient between the two stocks. Select one: O a. 0.63 O b. 0.45 Oc 0.84 Od. 0.76 Following Quession 18 and 19. estimate the portfolio standard deviation with an allocation of 40:60 in these two stocks. Select one: O a. 9.6% ОБ. 10.8% Oc 10.2% O d. 9.2%

An investor has the following expectations on the performance of Stock X and Stock Y: Probability Scenario Returns (6) Stock X Stock Y 0.20 Good 50% 14% 0.50 Average 30% 66 0.30 Bad -10% 6% Estimate the portfolio return with an allocation of 70:30 (XY) in the two stocks. Select one: O a. 11.92% ОБ. 14.80% Oc 32.00% Od. 17.68% Following Quession 18, estimate the correlasion coefficient between the two stocks. Select one: O a. 0.63 O b. 0.45 Oc 0.84 Od. 0.76 Following Quession 18 and 19. estimate the portfolio standard deviation with an allocation of 40:60 in these two stocks. Select one: O a. 9.6% ОБ. 10.8% Oc 10.2% O d. 9.2%

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 3P: Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 40%. Stock B...
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An investor has the following expectations on the performance of Stock X and Stock Y: Probability Scenario Returns (%) Stock X Stock Y 0.20 Good 50% 14% 0.50 Average 30% 6% 0.30 Bad -10% 6% Estimate the portfolio return with an allocation of 70:30 (X:Y) in the two stocks. Select one: O a. 11.92% ОБ. 14.80% O. 32.00% O d. 17.68% Following Question 18, estimate the correlation coefficient between the two stocks. Select one: O a. 0.63 оъ. 0.46 O c. 0.84 O d. 0.76 Following Question 18 and 19, estimate the portfolio standard deviation with an allocation of 40:60 in these two stocks. Select one: O a. 9.6% о ь. 10.8% O c. 10.2% O d. 9.2%
Transcribed Image Text:An investor has the following expectations on the performance of Stock X and Stock Y: Probability Scenario Returns (%) Stock X Stock Y 0.20 Good 50% 14% 0.50 Average 30% 6% 0.30 Bad -10% 6% Estimate the portfolio return with an allocation of 70:30 (X:Y) in the two stocks. Select one: O a. 11.92% ОБ. 14.80% O. 32.00% O d. 17.68% Following Question 18, estimate the correlation coefficient between the two stocks. Select one: O a. 0.63 оъ. 0.46 O c. 0.84 O d. 0.76 Following Question 18 and 19, estimate the portfolio standard deviation with an allocation of 40:60 in these two stocks. Select one: O a. 9.6% о ь. 10.8% O c. 10.2% O d. 9.2%
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