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8 Finance questions-Consider the following information

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Question;finance questions-Consider the following information;Rate of Return If State Occurs;State of;Probability of;Economy;State of Economy;Stock A;Stock B;Recession;.35;.07;-.17;Normal;.40;.09;.16;Boom;.25;.13;.36;a.;Calculate the expected return for the two stocks.(Round your answers to 2 decimal places. Omit the "%;sign in your response.);Expected Return for A;%;Expected Return for B;%;b.;Calculate the standard deviation for the two stocks. (Round your answers to 2 decimal places. Omit the;"%" sign in your response.);Standard deviation for A;%;Standard deviation for B;%;Need help figuring out standard deviation;7.;value:3.00 points;Problem 11-9;Consider the following information;Rate of Return If State Occurs;State of;Probability of;Economy;State of Economy;Stock A;Stock B;Stock C;Boom;.25;.18;.32;.41;Good;.20;.12;.15;.15;Poor;.40;.05;-.08;-.06;Bust;.15;-.01;-.16;-.09;a.;Your portfolio is invested 25 percent each in A and C, and 50;percent in B. What is the expected return of the portfolio?(Round your answer to 2 decimal places. Omit the "%;sign in your response.);Expected return;%;b-1.;What is the variance of this portfolio?(Round your answer to 5 decimal places.);Variance of this portfolio;b-2.;The standard deviation?(Round;your answer to 2 decimal places. Omit the "%" sign in your;response.);Standard deviation;%;**Need help figuring out standard;deviation.;8.;value:4.00 points;Problem 11-10;Fill in the missing information in the following table. Assume;that Portfolio AB is 60 percent invested in Stock A.(Round your answer to 2 decimal places. Negative amounts should be;indicated by a minus sign. Omit the "%" sign in your response.);Annual Returns on Stocks A and B;Year;Stock A;Stock B;Portfolio AB;2006;14;%;24;%;%;2007;35.8;%;-36.2;%;%;2008;-18.6;%;46.2;%;%;2009;25.4;%;16.6;%;%;2010;14.2;%;25.8;%;%;Avg return;%;%;%;Std deviation;%;%;%;Only was able to figure out average return.;11.;value:1.00 points;Problem 12-2;A stock has an expected return of 11.2;percent, its beta is.50, and the risk-free rate is 4 percent. What must the;expected return on the market be?(Round;your answer to 2 decimal places. Omit the "%" sign in your;response.);Expected return;%;Don?t know how to figure out expected;return. Please show all steps. I need to;know how to figure out for the test.;Problem 12-3;A stock has an expected return of 15.9;percent, a beta of 1.70, and the expected return on the market is 11.2;percent. What must the risk-free rate be?(Round;your answer to 2 decimal places. Omit the "%" sign in your;response.);Risk-free rate;%;Problem 12-10;A stock has a beta of 1.2 and an expected return of 8 percent. A;risk-free asset currently earns 3 percent.;a.;What is the expected return on a portfolio;that is equally invested in the two assets?(Round;your answer to 2 decimal places. Omit the "%" sign in your;response.);Expected return;%;b.;If a portfolio of the two assets has a beta of;1.0, what are the portfolio weights?(Round;your answers to 2 decimal places. Omit the "%" sign in your;response.);Weight;xS;%;xrf;%;c.;If a portfolio of the two assets has an;expected return of 6 percent, what is its beta?(Round;your answer to 2 decimal places.);Beta;d.;If a portfolio of the two assets has a beta of;2.40, what are the portfolio weights?(Negative;amounts should be indicated by a minus sign. Omit the "%" sign in;your response.);Weight;xS;%;xrf;%;20.;value:1.00 points;Problem 12-13;Stock Y has a beta of 1.5 and an expected;return of 15.5 percent. Stock Z has a beta of 0.4 and an expected return of 7;percent. What would the risk-free rate have to be for the two stocks to be;correctly priced relative to each other?(Round;your answer to 2 decimal places. Omit the;"%" sign in your response.);Risk-free rate;%;21.;value:2.00 points;Problem 12-15;Suppose you observe the following situation;Security;Beta;Expected Return;Peat Co.;1.20;14.6;Re-Peat Co.;.60;10.3;Assume these securities are correctly priced.;Based on the CAPM, what is the expected return on the market? What is the;risk-free rate?(Round your answer to 2;decimal places. Omit the "%" sign in your response.);Expected return;%;Risk-free rate;%

 

Paper#47574 | Written in 18-Jul-2015

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