finance HW attached in the attachment

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finance HW attached in the attachment Document Preview: 1) 2) 3) You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 18 percent, –3 percent, 16 percent, 11 percent, and 10 percent. a) What was the arithmetic average return on Crash-n-Burn’s stock over this five-year period? (Round your answer to 1 decimal place. (e.g., 32.1)) b) What was the variance of Crash-n-Burn’s returns over this period? (Round your answer to 5 decimal places. (e.g., 32.16161)) c) What was the standard deviation of Crash-n-Burn’s returns over this period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) 4) 5) 6) Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.4 percent and the standard deviation of those stocks in this period was 43.77 percent. a) What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) b) What about triple in value? (Round your answer to 6 decimal places. (e.g., 32.161616)) 7) 8) You own a portfolio that is 32 percent invested in Stock X, 20 percent in Stock Y, and 48 percent in Stock Z. The expected returns on these three stocks are 6 percent, 19 percent, and 15 percent, respectively. What is the expected return on the portfolio? (Round your answer to 2 decimal places. (e.g., 32.16)) 9) You have $20,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 11 percent and Stock Y with an expected return of 12.0 percent. If your goal is to create a portfolio with an 1expected return of 11.39 percent, how much money will you invest in Stock X?and Stock Y? 10) You own a stock portfolio invested 40 percent in Stock Q, 30 percent in Stock R, 20 percent in Stock S, and 10 percent in Stock T. The betas for these four stocks are 0.87, 1.20, 1.04, and 1.22, respectively.... Attachments: finance-hw.docx Nov 12 2013 03:38 AM

 

Solution ID:608811 | This paper was updated on 26-Nov-2015

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