Assume that the following data available for the portfolio, calculate the expected return, variance and standard deviation of the portfolio given stock A accounts for 45% and stock B accounts for 55% of your portfolio?    A B Expected return 12.5% 18.5% Standard Deviation of return 15% 20% Correlation of coefficient (p) 0.4

Q: Suppose Stock A has an expected return of 18% and a variance of 0.17, while Stock B has an expected…

A: Expected return of a portfolio is calculated as the sum of their weighted returns. It can be…

Q: What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70%…

A: Expected return from a portfolio is the weighted average of the return expected from individual…

Q: From the following information, calculate covariance between stocks A and B and expected return and…

A: Correlation between A and B = 0.65 Weight of A in portfolio = 50% Weight of B in portfolio = 50%…

Q: The standard deviation of stock A's returns (σA) is 34%, and the standard deviation of the market…

A: Standard deviation of stock A's returns (σA) is 34% Standard deviation of the market portfolio (σM)…

Q: Stock A and Stock B each have an expected return of 12 percent, a beta of 1.2, and a standard…

A: The expected return of Stock A = 12% The expected return of Stock B = 12% The beta of A and B = 1.2…

Q: A portfolio consists of Stock X and Stock Y. Data for the 2 stocks is shown below. Calculate the…

A: Hey, since there are multiple subpart questions posted, we will answer the first three subpart…

Q: Given the following returns for Stock X and stock Y Stock X % return   Stock Y % return 2…

A: Calculate the variance and standard deviation as follows:

Q: Suppose that Jerry Tan has surplus funds to invest in both stocks, Alpha and Beta. He has decided to…

A: For Stock: Expected return E(r) = ∑p*r Standard deviation = √∑p*(r-E(r))2  For portfolio: Expected…

Q: How many variance terms and how many covariance terms do you need to calculate the risk of a…

A: According to the rule, because you have posted multiple questions , we will answer the first…

Q: From the following information, calculate covariance between stocks A and B and expected return and…

A: Expected return on portfolio E(Rp) is calculated by sum product of stock returns and weight in the…

Q: The investor invested in stocks and bonds to form a minimum variance portfolio. The return and…

A: FORMULA FOR MINIMUM PORTFOLIO VARIANCE : WA=σB2-corrA,B×σA×σBσA2+σB2-2×corrA,B×σA×σBWB=1-WA Where,…

Q: You have invested in a portfolio of two stocks. Stock A is expected to produce a 7% return next…

A: Given information: Expected returns of stock A and Stock B are 7% and 15.5% Risk factor of stock A…

Q: 1. Calculate the expected return and standard deviation of a portfolio that is 80% Large Cap Stocks…

A:

Q: The following portfolios are being considered for investment. During the period under consideration,…

A: Sharpe measure: In sharpe measure, total risk of the portfolio is measured by the standard deviation…

Q: Need help on all

A: Hi there, Thanks for posting the question. As per Q&A Guidelines, we should answer the first…

Q: You have a two-asset portfolio that comprises stocks XX and ZZ. The information related to these two…

A: The Expected return of a portfolio refers to the total return which is expected by the investor…

Q: Returns State of Probability of State of Economy Economy Stock A Stock B Stock C Boom .40 15% 18%…

A: Expected return = weighted average return of the stocks in portfolio   Stock A = 35% Stock B = 45%…

Q: How many variance terms and how many covariance terms do you need to calculate the risk of a…

A: The variance of the portfolio is used to measure the variability in the return of the portfolio. in…

Q: Assume that the following data available for the portfolio, calculate the expected return,variance…

A: Diversified portfolio- It refers to a portfolio of investments in which unsystematic risk or firm…

Q: Calculate the expected return, variance, and standard deviation for a portfolio of four equally…

A: The expected return of the portfolio is the return that an investor gets based on the weightage…

Q: The following portfolios are being considered for investment. During the period under consideration,…

A: Portfolio is a bundle of various assets or investments. To reduce or manage the risk, investors…

Q: assume that the following data available for the portfolio, calculate the expected return, variance…

A: Given: Expected return of A =12.5% Expected return of B = 18.5% Standard deviation of A = 15%…

Q: Stock A has a return variance (that is σ2) of 0.02. The market portfolio has a return variance of…

A: given, σA2=0.02σM2=0.03cov =  0.01ra=0.09rm=0.12wa=0.65wm=0.35

Q: Using the data in the​ table, consider a portfolio that maintains a 35% weight on stock A and a 65%…

A: Given: Weight 35% 65% Year Stock A Stock B 2010 -3% 21% 2011 8% 24% 2012 7% 28% 2013…

Q: You have invested in a portfolio of two stocks. Stock A is expected to produce a 7% return next…

A: Formula for standard deviation as follows: Standard deviation=Weight of A2×Risk of A2+Weight of…

Q: Rank the following three stocks by their risk-return relationship, from best to worst: Stock A has…

A: The presentation of the ratio of the standard deviation of the project and the average return of a…

Q: Suppose you invest 60% of your portfolio in exxon mobil and 40% in coca cola. The expected dollar…

A: Portfolio is the result of several assets put together in order to have balanced return. In…

Q: Consider two stocks, Stock D, with an expected return of 13 percent and a standard deviation of 31…

A: Weight of stock in minimum variance portfolio is calculated by this formula. sigma stands for…

Q: A portfolio has 50% of its funds invested in Security A and 50% of its funds invested in Security B.…

A: Portfolio variance Portfolio variance is a concept used in modern investment theory that assesses…

Q: You have a portfolio which consists of 75% of stock 1 (o^2 = 0.16) and 25% of stock 2 (o^2 = 0.09).…

A: Return on the stock is based on the risk free rate, market return and the risk associated with the…

Q: Hyacinth Macaw invests 60% of her funds in stock I and the balanced stock in J. The standard…

A: Portfolio variance is calculated by this formula. w is weight of stocks σ is standard deviation of…

Q: Consider two stocks, Stock D, with an expected return of 13 percent and a standard deviation of 28…

A: Standard deviation of stock D (S1) = 28% Standard deviation of stock I (S2) = 38% Correlation (c) =…

Q: Compute the weights in a portfolio

A: Portfolio return is the return expected from the portfolio. The expected return is the weighted…

Q: Consider two stocks, Stock D, with an expected return of 13 percent and a standard deviation of 30…

A:

Q: Stock A has an expected return of 10% and a standard deviation of35%. Stock B has an expected return…

A: Given:   Stock A Stock B Expected Return(E(r)) 10.00% 15.00% SD[r] 35.00% 45.00% Weight of…

Q: Assume that the following data available for the portfolio, calculate the expected return, variance…

A: Formulas for calculating the values: Expected return = Wa[E(Ra)] + Wb[E(Rb)] Where Wa is the…

Q: Assume that the following data available for the portfolio, calculate the expected return, variance…

A: Portfolio Expected Return = (wa ×Ra) + (wb ×Rb) Wa= weight of security a Wb= weight of security b Ra…

Q: Consider two stocks, Stock D, with an expected return of 13 percent and a standard deviation of 27…

A: Minimum variance portfolio is calculated by this formula: σ stands for standard deviation, ρ stands…

Q: Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has an expected…

A: Calculate the expected return as follows: Therefore, the expected return is 16.20%.

Q: Your employer has asked you to investigate the firm’s portfolio risk and return. The portfolio…

A: State of economy Probability Stock-A Stock-B Stock-C Good 60.00% 3.00% 34.00% 70.00% Poor 40.00%…

Q: firm’s portfolio risk and return.

A: Portfolio's Risk and Returns: Portfolio's risk and return states the relationship between the…

Q: Stock Investment Expected Return A $ 5,000 12% B 10,000 10 C 15,000 14

A: The expected return for an investment portfolio is the weighted average of the expected return of…