After extensive research, you believe the probability distribution

After extensive research, you believe the probability distribution for next year’s return on FB Inc is:

Return Probability

-1.5% 0.2

20.2% 0.3

-6.3% 0.3

23.5% 0.2

Compute the standard deviation of this return.

Express your answer as a percentage to three decimal places (the percent sign is not essential). That is, if you compute a standard deviation of 0.12345, enter your answer as 12.345.

Suppose that the risk-free rate is 5% and the market portfolio has an expected return of 13% with a volatility of 18%. Monsters Inc. has a 24% volatility and a correlation with the market of .60, while California Gold Mining has a 32% volatility and a correlation with the market of -.7. Assume the CAPM assumptions hold.

WRITE THIS ESSAY FOR ME

Tell us about your assignment and we will find the best writer for your paper.

Get Help Now!

California Gold Mining’s required return is closest to:

		-5%
		13%
		5%
		15%

Which of the following statements is FALSE?

		When we have a long position in a stock, its weight in the portfolio is negative.
		The efficient portfolios are those portfolios offering the highest possible expected return for a given level of volatility.
		When two stocks are perfectly negatively correlated, it becomes possible to hold a portfolio that bears absolutely no risk.
		The lower the correlation of the securities in a portfolio the lower the volatility we can obtain.

An equally weighted portfolio consists of 65 assets which all have a standard deviation of 0.203. The average covariance between the assets is 0.136. Compute the standard deviation of this portfolio. Please enter your answer as a percentage to three decimal places (i.e. 12.345% rather than 0.12345 — the percent sign is optional).

Introducing our Online Essay Writing Services Agency, where you can confidently place orders for a wide range of academic assignments. Our reputable homework writing company specializes in crafting essays, term papers, research papers, capstone projects, movie reviews, presentations, annotated bibliographies, reaction papers, research proposals, discussions, and various other assignments. Rest assured, our content is guaranteed to be 100% original, as every piece is meticulously written from scratch. Say goodbye to concerns about plagiarism and trust us to deliver authentic and high-quality work.

Return	Probability
-1.5%	0.2
20.2%	0.3
-6.3%	0.3
23.5%	0.2

WRITE THIS ESSAY FOR ME

WRITE MY ESSAY NOW

LATEST ASSIGNMENTS

Facing the Workforce of the Future The diversity of the U.S.

ECO 202 Module 3 SLP Assignment

BUS 642 Week 3 DQ 1 – Measurement Scales