The following information relates to four assets: Probability Return on E Return on F Return on G Return on H 0.1 10% 6% 14% 2% 0.2 10% 8% 12% 6% 0.4 10% 10% 10% 9% 0.2 10% 12% 8% 15% 0.1 10% 14% 6% 20% (a) What is the expected return for each of the assets? (4) (b) Calculate the variance of each asset. (8) (c) Determine the covariance of asset F and G. (4) (d) What is the correlation coefficient between assets F and G? (4)

Assume that you have obtained the following information for Asset A:   Rate of Return Probability 5.5% 25% 7.25% 55% 11% 20%   Compute the expected rate of return for Asset A, using the information provided in thechart above   Assume that the standard deviation of the expected returns for Asset A is 1.87%.  With  information and the expected rate of return that you calculated for Asset A in Part A of this  problem, compute the co-efficient of variation for Asset A.

The expected value, standard deviation of returns, and coefficient of variation for asset A are   9.33%, 8% and 2.15 respectively 9.35%, 2.76% and 0.295 respectively 9.35%, 4.68% and 2 respectively 10%, 8% and 1.25 respectively

Compute the expected return, variance, and standard deviation of the following assets. Show the solutions   Probability Return of Assets   Asset A Asset B Asset C 25% .030 .030 -.030 25% .050 .180 .280 25% .100 .080 -.180 25% .280 -.050 -0.180 Expected Return       Variance       Standard Deviation

Possible returns and their probabilities for an asset is given in the table below. The expected return is 30.25%. Calculate the standard deviation of the asset's return. Probability 0.40 0.45 0.15 13.92% O 17.84 % 18.55% O 19.09% 16.59% Return 0.52 0.17 0.12

Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected​ return, r​, is 18.7​%; and that the coefficient of​ variation, CV​, is 1.88​, answer the following​ questions:   a. Find the standard deviation of​ returns, sigma Subscript rσr. b. Calculate the range of expected return outcomes associated with the following probabilities of​ occurrence: (1)​ 68%, (2)​ 95%, (3)​ 99%.

The expected value and the standard deviation of returns for asset A is   12.7% and 2.3% 12.7% and 4% 12% and 4% 12% and 2.3%

Use the following table to calculate the expected return from the asset. Return Probability 0.1      0.25     0.2      0.5     0.25      0.25       20.00% 18.75% 17.50% 15.00%

What is the total variance of the following portfolio including 2 assets invested in the ratio of 3:1. Asset A: E(r) = 0.3 , s = 0.6 Asset B: E(r) = 0.4, s = 0.8 Correlation: 0.8 rf = 0.1 A) 1.14 B) 0.88 C) 0.38 D) 1.44

Suppose two asset returns are described by a two factor model, n = 0% + 11 + 1.82 + e1 2 = -1% + 2/1 + 0.52 + e2 where the volatility of first factor is 30%, the volatility of the second factor is 10%, and the correlation between the two factors is 0.5. Suppose also that the volatilities of the error terms ej and ez are both 10%. What is the covariance of n and r2 ? (Nearest 0.0001).