Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. using the data in the following table, consider a

Using the data in the following table, consider a portfolio that maintains a 55% weight...

60.1K

Verified Solution

Question

Finance

image

Using the data in the following table, consider a portfolio that maintains a 55% weight on stock A and a 45% weight on stock B. a. What is the return each year of this portfolio? b. Based on your results from part (a), compute the average return and volatility of the portfolio. c. Show that (i) the average return of the portfolio is equal to the weighted) average of the average returns of the two stocks, and (ii) the volatility of the portfolio equals the same result as from the calculation in Eq. 11.9. d. Explain why the portfolio has a lower volatility than the average volatility of the two stocks. a. What is the return each year of this portfolio? Enter the return of this portfolio for each year in the table below: (Round to two decimal places.) Year 2010 2011 Portfolio 2012 2013 2014 2015 % i Data Table (Click on the following icon Year 2010 Slock A -3% Stock B 21% in order to copy its contents into a spreadsheet.) 2011 2012 2013 2014 8% 7% -10% 2% 24% 28% -5% -13% 2015 9% 28 2795 Print Done Enter your answer in the edit fields and then click Check

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Please describe the overall mechanism for DNA polymerase function as discussed in class. What is the...

Biology
Q

in your own words what an STL file in (SolidWorks) is and how it is used...

Mechanical Engineering
Q

Share your self control successes or failures with your classmates You may learn something from...

Biology
Q

A hospital has 208 nurses to be apportioned among four shifts Shifts A B C...

Basic Math
Q

State if the sequence is arithmetic, geometric, or neither. 1, 5, 35, 175, 875...a. Arithmeticb....

Basic Math
Q

P7 10 8 6 lim f x 00 X 4 4 Choose the correct statement...

Calculus
Q

Add or subtract these rational expressions 1 2x 8x x 6 3 x 6 7...

Algebra
Q

David and Angela Brook are a married couple. They disposed of the following assets during...

Accounting
Q

Patriot Co., manufactures and sells three products: red, white, and blue. Their unit selling prices...

Accounting
Q

ABC company is a toy manufacturing firm. It estimates that it will produce 20,000 toy...

Accounting
Q

13. Darby Company, operating at full capacity, sold 148,400 units at a price of $48...

Accounting
Q

EM11-23 (similar to) Congratulations! You have won a state lottery. The state lottery offers you...

Accounting