which stocks should be chosen? (round final answer 2 decimal places) Coefficient of variance of Stock X _______ Coefficient of variance of Stock Y ________ Coefficient of variance of Stock Z ________

Q: Suppose that the standard deviation of returns from a typical share is about 0.43 (or 43%) a year.…

A: a. The Computation is done as when the correlation is 0.3: The formulation sheet is annexed below:

Q: Stocks X and Y have the following probability distributions of expected future returns: Calculate…

A: Standard deviation: The standard deviation is a measurement of the variance or dispersion of a set…

Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…

A: The question is based on the concept of systematic risk and firm specific risk for individual…

Q: Stock R has a beta of 1.8, Stock S has a beta of 0.65, the expected rate of return on an average…

A: Required rate of return = risk free rate  +(beta * market risk premium)

Q: Stock A has an expected return of 18% and a standard deviation of 38%. Stock B has an expected…

A: The Sharpe ratio is calculated as follows:   Subtract the risk-free rate from the return…

Q: 3. Consider three stocks A, B and C and a market index M with the following prices: Year то T1 T2…

A: Note: This question has several sub-parts. The first three have been answered below

Q: Stock price variance (that is, riskiness of stock)What is the value of a call option with these…

A: Calculate the value of call as follows: Value of call = (Spot price *N(d1)) - (Strike price*…

Q: Stock X has a 10.0% expected return, a beta coefficient of 0.9, and a 40% standard deviation of…

A: The coefficient of variation (CV), also known as relative standard deviation (RSD), is a normalized…

Q: Butterfly Ballot Inc. common stock has the following projected rates of return (outcomes):  −10%,…

A: Excel Spreadsheet:

Q: Stocks A and B have the following probability distributions of expected future returns: Probability…

A: Since question involves multiple subparts , we will answer 1st sub 3 parts for you as per prescribed…

Q: Consider the following information: Probability of State of Economy 0.54 0.46 State of Rate of…

A: Expected return refers to the anticipated amount of profit or loss that an investor calculates from…

Q: A stock's returns have the following distribution: Demand for the Probability of This Rate of Return…

A: Stock’s expected return is the return which is expected to be generated from the project. This…

Q: You have a portfolio of 4 stocks with equal shares invested in each stock. Variancesof individual…

A: a) A portfolio of 4 equally weighted stocks with variance being 16 and correlation between each pair…

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 the index model for stocks A and B is estimated from excess returns with the following…

A: Systematic risk refers to the risk of the entire segment of the industry or market.

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: Given the following information below for Stock A, calculate its standard deviation 6. Where: wwwww…

A: Expected return can be defined as the return which an investor expects to be generate on a project…

Q: Stocks A and B have the following probability distributions of expected future returns:…

A: 1.) Computation of the expected rate of return of stock A: Hence, the expected return of stock A is…

Q: a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round…

A: Information Provided: Probability of Boom Economy = 0.68 Probability of Bust Economy = 0.32

Q: Suppose that the standard deviation of returns from a typical share is about 0.45 (or 45%) a year.…

A: Let's try to solve this problem conceptually first before getting into excel.Suppose we include n…

Q: Calculate each stock's required rate of return. Round your answers to two decimal places. rx = ry…

A: Introduction: Capital asset pricing model is the widely used financial model which is used in…

Q: Stocks A B and C display the following parameters: Expected Return A  15%         Variance 9%2…

A: Expected return of A (Ra) = 15% Standard deviation of A (Sa) = Square root of variance = 3% Expected…

Q: For the coming year you have determined that the following possibilities are most likely for stock…

A: Standard deviation expresses the variation in the average return that an investor expects from the…

Q: Stock X has a 10.0% expected return, a beta coefficient of 0.9, and a 35% standard deviation of…

A: In the given question we have six different parts of the question related to portfolio and we need…

Q: Stock X has a standard deviation of return of 10%. Stock Y has a standard deviation of 20%. The…

A: The standard deviation of a portfolio helps to determine the volatility of the portfolio.

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: portfolo P consists of 2 stocks 50% is invested on stock A and 50% is invested in stock B. stock A…

A: Formulation for SD of a portfolio is shown:

Q: The correlation coefficients between several pairs of stocks are as follows: Corr(A, B) = .85;…

A: Answer: The correct choice is option (c) “Stock D” which is combination of 50% of stock A and 50% of…

Q: You have the following data on three stocks: Stock Standard Deviation Beta A. 0.15 0.79 0.25 0.61 C…

A:

Q: You have a portfolio that is invested 22 percent in Stock A, 32 percent in Stock B, and 46 percent…

A: Beta of portfolio is weighted average beta of individual stock's beta

Q: Stock R has a beta of 1.4, Stock S has a beta of 0.95, the expected rate of return on an average…

A: The required return of the stock is calculated using the Capital asset pricing model(CAPM ).    The…

Q: The following shows the expected percentage returns on three stocks over the next six years: Stock…

A: Standard deviation is used to measure the portfolio risk. It is the under root of variance of each…

Q: Stock Y has a beta of 1.2 and an expected return of 11.5 percent. Stock Z has a beta of .80 and an…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A stock's returns have the following distribution: Demand for the Company's Products Probability of…

A: Risk free rate = 3% The stock's expected return is the return anticipates on investment by the…

Q: Use the following table of information: Stock X Stock Y Expected Return 14% 18% Standard Deviation…

A: The term "variance" is referred to as the degree of volatility that a stock have with respect to its…

Q: Stock A has expected return of 15% and standard deviation (s.d.) 20%.  Stock  B  has  expected…

A: The Capital Asset Pricing Model establishes a relationship between systematic risk and expected…

Q: Consider the following information about three stocks: Rate of Return If State Occurs Probability of…

A: Hi There, Thanks for posting the question. As per Q&A guidelines, the solution for first three…

Q: Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate ofreturn on an average…

A: The riskiness of security is measured by "Beta". Beta measures the volatility of the stock with…

Q: Stock R has a beta of 2.0, Stock S has a beta of 0.35, the required return on an average stock is…

A: Stock R beta (BR) = 2.0 Stock S beta (BS) = 0.35 Risk free rate (RF) = 3% Market rate of return (RM)…

Q: A stock's returns have the following distribution: Demand for the Company's Products Probability of…

A: Risk free rate = 4% Formulas used:  Expected return = P1*X1 + P2*X2 +.....Pn*Xn

Q: A stock's returns have the following distribution: Demand for the Company's Products Probability of…

A: Expected return E(r) = ∑p*r Standard deviation SD(r) = √p(r-E(r))2 Coefficient of variance =…

Q: Stock R has a beta of 1.9, Stock S has a beta of 0.45, the required return on an average stock is…

A: The Required Rate of Return is computed by using CAPM as follows: Required Rate of return =…

Q: Stocks A, B, and C have expected returns of 24 percent, 24 percent, and 20 percent, respectively,…

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

Q: Suppose that the index model for stocks A and Bis estimated from excess returns with the following…

A: Variance measures the spread of each number in the data set from the mean of the data set. The…

Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…

A: Variance of Stock: volatility  of stock is measured by variance of stock  How much a stock tends to…

Q: Stock R has 14% expected return, 20% standard deviation, 1.3 beta coefficient where as Stock S has…

A: Expected return on stock R = 14% Standard deviation on stock R = 20%  The beta coefficient on stock…