Description of this paper

please help me understand this maths question REWARDS




Question;After extensive research, you believe the probability distribution for next year's return on FB Inc is:ReturnProbability-1.5%0.220.2%0.3-6.3%0.323.5%0.2Compute 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.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).


Paper#60912 | Written in 18-Jul-2015

Price : $27