Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1) the probability distribution of returns on voya

1) The probability distribution of returns on Voyager Therapeutics and Nightstar Therapeutics stocks are provided...

70.2K

Verified Solution

Question

Finance

image

1) The probability distribution of returns on Voyager Therapeutics and Nightstar Therapeutics stocks are provided below. Frieda holds a Portfolio F made up of 35% invested in the Voyager stock and the remaining in the Nightstar stock. Probability Voyager Nightstar 0.40 12% 11.6% 0.30 7% 8.1% 0.30 4.5% | Expected Return 8.25% 9.92% Standard Deviation 3.2113% 1.4750% Beta 0.49 0.38 9.5% The risk-free rate of return is 5.98% and the market risk premium is estimated to be 5.2%. a) Compute the expected return and standard deviation of returns on Portfolio F. b) Has Portfolio F achieved any diversification? Briefly explain why or why not. c) What is the beta of Portfolio F? d) Using CAPM, what is the required rate of return on Portfolio F? e) Will the expected market price of Portfolio F be higher or lower than its intrinsic value

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Briefly discuss the importance of the options market and purposes that they serve in the market....

Finance
Q

*Please describe your knowledge of and/or experience with the Juvenile Detention Alternatives Initiative (JDAI) model..

Psychology
Q

32 ABC is an equilateral triangle of side 10 m and D is the midpoint...

Physics
Q

etermine whether A MNPA QRS Justify your reasoning R 38 in 54 in 47 38...

Geometry
Q

the circle is 907 92 cm ger or decimal rounded to the nearest hundredth as...

Basic Math
Q

Data on Scholastic Aptitude Test SAT scores are published by the College Entrance Examination Board...

Statistics
Q

Using 2017 tax law,indicate;The taxpayers correct and most favourable filling status.Their greatest number of personal...

Accounting
Q

Necesito ayuda urgente en este Ejercicio de Contabilidad de Estado de Resultados. EJERCICIO No....

Accounting
Q

As an auditor, which alternative procedures would you use? Explain and provide an example from...

Accounting
Q

Blue Companys record of transactions for the month of April was as follows. Purchases Sales...

Accounting
Q

Journalize the following: Global started the period with 800 units of Alpha...

Accounting
Q

Question 19 3.6 pts A borrower bought a house for $300,000; he can obtain an...

Finance