Your portfolio invests in the stock of two companies. Company​ A’s stock has a variance of​ 0.25, while Company​ B’s stock has a standard deviation of 0.30. The correlation between the two stocks is 0.40. If​ 30% of your portfolio is invested in Company​ A, and​ 70% in Company​ B, what is the standard deviation of your​ portfolio?   A. ​28.74%   B. ​24.96%   C. ​30.30%   D. ​28.50%

Stock X has a 10.0% expected return, a beta coefficient of 0.9, and a 30% standard deviation of expected returns. Stock Y has a 12.5% expected return, a beta coefficient of 1.2, and a 25% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. a. Calculate each stock's coefficient of variation. Do not round intermediate calculations. Round your answers to two decimal places. CVx= CVy= 2

K (Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Probability 0.20 0.60 0.20 Common Stock B Return 13% 17% 18% Probability 0.10 0.40 0.40 0.10 (Click on the icon in order to copy its contents into a spreadsheet.) Return -7% 5% 16% 21% www a. Given the information in the table, the expected rate of return for stock A is 16.40 %. (Round to two decimal places.) The standard deviation of stock A is 1.74 %. (Round to two decimal places.) b. The expected rate of return for stock B is 9.8 %. (Round to two decimal places.) The standard deviation for stock B is 6.12 %. (Round to two decimal places.)

Consider an equally weighted portfolio that contains 80 stocks. If the average volatility of these stocks is 35% and the average correlation between the stocks is .4, then the volatility of this equally weighted portfolio is closest to:         0.2     0.14     0.41     0.22

Consider two stocks, Stock D, with an expected return of 19 percent and a standard deviation of 34 percent, and Stock I, an international company, with an expected return of 7 percent and a standard deviation of 22 percent. The correlation between the two stocks is -0.20. What are the expected return and standard deviation of the minimum variance portfolio? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Expected return Standard deviation 7.66 % 10.07%

(Expected rate of return and​ risk) ​ Syntex, Inc. is considering an investment in one of two common stocks. Given the information that​ follows, which investment is​ better, based on the risk​ (as measured by the standard​ deviation) and​ return?   Common Stock A Common Stock B Probability Return Probability Return0.20            10%      0.15           -4% 0.60             16%     0.35            7%0.20              21%     0.35           13%                                 0.15            20%     a) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that​ follows, what is the expected rate of return for stock​ A? What is the standard​ deviation?   b.​ Syntex, Inc. is considering an investment in one of two common stocks. Given the information that​ follows, what is the expected rate of return for stock​ B? What is the standard​ deviation?   c.  Based on the risk​ (as measured by the standard​ deviation) and return of each​ stock, which…

Consider the following information on a portfolio of three stocks: State of Economy Probability of State of Economy Stock A Rate of Return Stock B Rate of Return Stock C Rate of Return Boom .25 .04 .33 .55 Normal .60 .09 .13 .19 Bust .15 .15 −.14 −.28 If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio’s expected return? The variance? The standard deviation? Note: Do not round intermediate calculations. Round your variance answer to 5 decimal places, e.g., .16161. Enter your other answers as a percent rounded to 2 decimal places, e.g., 32.16. If the expected T-bill rate is 3.4 percent, what is the expected risk premium on the portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

You put half of your money in a stock that has an expected return of 14% and a standard deviation of 24%. You put the rest of your money in a bond that has an expected return of 6% and a standard deviation of 12%. The stock and bond have a correlation of .55. What is the variance of your portfolio? Enter your answer as a decimal, rounded to four decimal places. (Continued from the previous question) You are forming a Capital Allocation Line (CAL) using the risk-free asset with a 4% return and the portfolio described in the previous question.  What is the slope of the CAL?  Round your answer to two decimal places.

Syntex, Inc. is considering an investment in one of two common stocks. Given the information that​ follows, which investment is​ better, based on the risk​ (as measured by the standard​ deviation) and​ return?   Common Stock A              Common Stock B              Probability Return Probability Return 0.35 13​% 0.25 −7​%   0.30 17​% 0.25 8​%   0.35 21​% 0.25 15​%       0.25 23​%   ​(Click on the icon    in order to copy its contents into a spreadsheet.​)       Question content area bottom Part 1 a.  Given the information in the​ table, the expected rate of return for stock A is enter your response here​%. ​(Round to two decimal​ places.)

9. A portfolio is composed of two stocks, Stock A and B. The standard deviation of return for Stock A is 50% and for Stock B it is 40%. If the covariance between the returns for Stock A and Stock B is -0.04, compute the correlation coefficient between the returns for Stock A and Stock B.