acoma Corp.'s stock is $42 per share. Its expected return is 23% and variance is 15%. Element Corp.'s stock is $21 per share. Its expected return is 10% and variance is 6%. Sedes Corp.'s stock is $48 per share. Its expected return is 12% and variance 7%. What would be the expected return of a portfolio consisting of 20.00% Tacoma and 80.00% Element? O 12.60% O 2.52% 6.30% O 15.00% O 10.08%

acoma Corp.'s stock is $42 per share. Its expected return is 23% and variance is 15%. Element Corp.'s stock is $21 per share. Its expected return is 10% and variance is 6%. Sedes Corp.'s stock is $48 per share. Its expected return is 12% and variance 7%. What would be the expected return of a portfolio consisting of 20.00% Tacoma and 80.00% Element? O 12.60% O 2.52% 6.30% O 15.00% O 10.08%

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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Given the following information,what is the cost of equity capital for JJ&Co Pty Ltd? JJ&Co equity returns currently have a variance of 46.5%². The market portfolio has a 7.5% expected return and a variance of 40%². The correlation between JJ&Co equity returns and the market portfolio is 0.5. The risk-free rate is 2%.
Toyota Corp's stock is $32 per share. Its expected return is 25% and variance is 15%. Honda Corp's stock is $20 per share. Its expected return is 20% and variance is 7%. Benz Corp's stock is $42 per share. Its expected return is 11% and variance 7%. The covariance between Toyota and Honda is 0.03. What would be the standard deviation of a portfolio consisting of 50% Toyota and 50% ? OWL says the answer is 0.15, Please how to achieve this answer with steps in excel if possible.
You have $10,000 worth of shares of Spotify. You plan to add additional $5,000 worth of Spotify's shares. What is the standard deviation of your portfolio if the variance of the returns on Spotify is 0.09?
Your portfolio invests in the stock of two companies. Company A’s stock has a variance of 0.25, while Company B’s stock has a standard deviation of 0.30. The correlation between the two stocks is 0.40. If 30% of your portfolio is invested in Company A, and 70% in Company B, what is the standard deviation of your portfolio? A. 28.74% B. 24.96% C. 30.30% D. 28.50%
The standard deviation of return on stock A is 15% and the standard deviation on stock B is 15%. The correlation coefficient between the returns on stock A and B is -.25%. The rate of return for stocks A and B is 15% and 15% respectively. What is the standard deviation of return on the minimum-variance portfolio? a) 11.73% b) 12.00% c) 8.80% d) 9.35%
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Silver Industries' Y shares have an expected return of 15%, a beta coefficient of 0.8 and a standard deviation of expected returns of 31%. The company's Z shares have an expected return of 11.3%, a beta coefficient of 1.5 and a standard deviation of 25%. The risk-free rate is 5% and the market risk premium is 4%.d. Explain which stock might be more attractive to investors. e. Calculate the return on a portfolio that has $9,200 invested in stock "Y" and $3,500 invested in stock "Z".f. Suppose the market risk premium increases to 7%, which stock would have a higher return?
Suppose you have a portfolio consisting of two assets, A and B. Stock A has an expected return of 14% and a standard deviation of 31%. Stock B has an expected return of 10% and a standard deviation of 15%. Stocks A and B have a correlation of 0.98. Assuming you invest $7,000 in stock A and $3,000 in stock B, what is the standard deviation of your portfolio? 35.1% 19.4% 26.1% 14.1%
Stock R has 14% expected return, 20% standard deviation, 1.3 beta coefficient where as Stock S has 9% expected return, 30% standard deviation and a beta coefficient of 0.8. the market risk premium is 6.5% and the risk-free rate is 5%. Calculate the coefficient of variation of each stock. Calculate the required rate of return of each stock. Calculate the required return of a portfolio that has RM2,000 in Stock S and RM 8,000 in Stock R.
Consider two high-risk stocks, X and Y. The expected return on stock Y is 16%, with a standard deviation of 13%. The expected return on stock X is 20%, with a standard deviation of 25%. The correlation between the returns of X and Y is + 0.3. What is the expected return and standard deviation of 40% of Y investment and 60% of the portfolio of X investment?
Suppose Johnson & Johnson and the Walgreen Company have the expected retums and volatilities shown below, with a correlation of 22.0%. EIR 7.0% SD(R 16.0% 20.0% Johnson & Johnson Walgreen Company 10.0% For a portfolio that is equally invested in Johnson & Johnson's and Walgreen's stock, calculate: a. The expected return. b. The volatility (standard deviation). a. The expected return. The expected return of the portfolio is %. (Round to one decimal place.) Print Screen F11 F12 F10 F8 F5 F6 F2 Backspace & % %2$ 4 6. 5 U
The return on stock 1 has a standard deviation of 27% and the return on stock 2 has a standard deviation of 18%. Their correlation is -0.2. If you invest 20% in stock 1 and 80% in stock 2, what is the variance of the portfolio? What is the standard deviation of the portfolio? [ dont use excel]

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