Consider the following information: Rate of Return if State Occurs Probability of State of Economy State of Economy Stock A Stock B Recession .15 .04 -17 Normal .55 .09 .12 Boom .30 .17 .27 a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Consider the following information: Rate of Return if State Occurs Probability of State of Economy State of Economy Stock A Stock B Recession .15 .04 -17 Normal .55 .09 .12 Boom .30 .17 .27 a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You own portfolio that has $1,600 invested in Stock A and $2,700 invested in Stock B. Assume the expected returns on these stocks are 11 percent and 17 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
You own a stock portfolio invested 16 percent in Stock Q, 24 percent in Stock R, 36 percent in Stock S, and 24 percent in Stock T. The betas for these four stocks are .94, 1.00, 1.40, and 1.85, respectively. What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
You own a portfolio that has $1,600 invested in Stock A and $2,700 invested in Stock B. Assume the expected returns on these stocks are 11 percent and 17 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
You own a portfolio that has $1,331 invested in Stock A and $2,857 invested in Stock B. If the expected returns on these stocks are 0.08 and -0.01, respectively, what is the expected return on the portfolio? Enter the answer with 4 decimals (e.g. 0.1234).
You own a stock portfolio invested 34 percent in Stock Q, 18 percent in Stock R, 36 percent in Stock S, and 12 percent in Stock T. The betas for these four stocks are 1.03, 1.09, 1.49, and 1.94, respectively. What is the portfolio beta? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Portfolio beta
You own a stock portfolio invested 23% in Stock Q, 22% in Stock R, 43% in Stock S, and 12% in Stock T. The betas for these four stocks are .87, .93, 1.33, and 1.78, respectively. What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Portfolio beta
You own a portfolio that is 26 percent invested in Stock X, 41 percent in Stock Y, and 33 percent in Stock Z. The expected returns on these three stocks are 11 percent, 14 percent, and 16 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
You own a portfolio that is 23 percent invested in Stock X, 38 percent in Stock Y, and 39 percent in Stock Z. The expected returns on these three stocks are 11 percent, 14 percent, and 16 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.; 32.16.)
You own a portfolio that is 1 percent invested in Stock W, 23 percent invested in Stock X,22 percent in Stock Y , and the rest invested in Stock Z. The expected returns on these three stocks are 3 percent. 15.73 percent, 8.29 percent, and 9.03 percent, respectively. What is the expected return on the portfolio? (Do not round any intermediate calculations. List your answer as a percent, round your final answer to 2 decimal places and enter it in the box below.)
Stocks A and B have expected returns of 0.119 and 0.133, respectively. You form a portfolio consisting of $5,000 in Stock A and $6,000 in Stock B. What is your portfolio's expected return? Enter your answer as a decimal and show 4 decimal places. Type your answer... Previous
Suppose you allocate 2/5 of your portfolio value to a stock that has an expected return of 8% and the rest to another stock that has an expected return of 17%. What is the expected return on your two-stock portfolio? Note: Show your answer in units of percents, use plain numbers with at least two digits after the decimal (e.g., for 12.34%, type 12.34).
You own a stock portfolio invested 32 percent in Stock Q, 22 percent in Stock R, 19 percent in Stock S, and 27 percent in Stock T. The betas for these four stocks are 0.82, 0.97, 0.57, and 0.64, respectively. What is the portfolio beta? Enter the answer with 4 decimals (e.g. 1.1234)

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