The table below shows standard deviations and correlation coefficients for seven stocks from different countries. Calculate the variance of a portfolio with equal investments in each stock. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Round your answer to 4 decimal places.) BHP Billiton Siemens Toronto Dominion Nestlé LVMH Bank Samsung BP BHP Billiton 1.00 0.26 0.37 0.38 0.21 0.38 0.17 Siemens 1.00 0.30 0.21 0.17 0.32 -0.09 Nestlé 1.00 0.06 0.07 -0.01 0.07 LVMH 1.00 0.36 0.54 -0.10 Toronto Dominion Bank Samsung BP 1.00 0.13 -0.13 1.00 -0.12 1.00 Standard deviation (%) 28.00 39.80 50.80 26.30 20.00 40.50 48.40 Portfolio variance
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- Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 0.35 13% 0.25 −7% 0.30 17% 0.25 8% 0.35 21% 0.25 15% 0.25 23% (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 a. Given the information in the table, the expected rate of return for stock A is enter your response here%. (Round to two decimal places.)The table below shows standard deviations and correlation coefficients for seven stocks from different countries. Calculate the variance of a portfolio with equal investments in each stock. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Round your answer to 4 decimal places.) BHP Billiton Siemens Nestlé LVMH Toronto Dominion Bank Samsung BP BHP Billiton 1.00 0.28 0.37 0.40 0.16 0.40 0.14 Siemens 1.00 0.34 0.16 0.14 0.31 –0.12 Nestlé 1.00 0.09 0.10 0.02 0.10 LVMH 1.00 0.33 0.51 –0.07 Toronto Dominion Bank 1.00 0.10 –0.10 Samsung 1.00 –0.09 BP 1.00 Standard deviation (%) 25.00 36.80 47.80 23.30 17.00 37.50 45.40(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Probability 0.20 0.60 0.20 Probability 0.15 0.35 0.35 0.15 (Click on the icon in order to copy its contents into a spreadsheet.) Common Stock B Return 13% 14% 18% Return - 6% 7% 15% 21% a. Given the information in the table, the expected rate of return for stock A is 14.6 %. (Round to two decimal places.) The standard deviation of stock A is %. (Round to two decimal places.)
- Based on the following information: State of Economy Probability of State of Economy Return on Stock J Return on Stock K Bear .20 -.030.024 Normal .55.128.052 Bull .25 .208.082 a. Calculate the expected return for each of the stocks. (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 each of the stocks. ( Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g , 32.16.) c. What is the covariance between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) d. What is the correlation between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.)Suppose all possible investment opportunities in the world are limited to the five stocks listed in the following table. What are the market portfolio weights? (Click on the following icon O in order to copy its contents into a spreadsheet.) Number of Shares Outstanding (millions) Stock Price/Share ($) A 8.43 10 В 19.15 12 C 5.94 46.68 1 E 42.87 ..... Enter the percentage that each stock makes up of the total portfolio: (Round to two decimal places.) Stock % of Total (portfolio weight) A % В % E % 20The table below shows standard deviations and correlation coefficients for seven stocks from different countries. Calculate the variance of a portfolio with equal investments in each stock. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Round your answer to 4 decimal places.) BHP Billiton Siemens Nestlé LVMH Toronto Dominion Bank Samsung BP BHP Billiton 1.00 0.31 0.36 0.40 0.14 0.40 0.14 Siemens 1.00 0.28 0.14 0.14 0.32 –0.10 Nestlé 1.00 0.07 0.08 0.00 0.08 LVMH 1.00 0.35 0.53 –0.09 Toronto Dominion Bank 1.00 0.12 –0.12 Samsung 1.00 –0.11 BP 1.00 Standard deviation (%) 27.00 38.80 49.80 25.30 19.00 39.50 47.40 Portfolio variance
- The table below shows standard deviations and correlation coefficients for seven stocks from different countries. Calculate the variance of a portfolio with equal investments in each stock. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Round your answer to 4 decimal places.) BHP Billiton Siemens Nestlé LVMH Toronto Dominion Bank Samsung BP Standard deviation (%) BHP Billiton Siemens 1.00 0.34 1.00 26.00 37.80 Nestlé 0.39 0.32 1.00 48.80 LVMH 0.41 0.14 0.08 1.00 24.30 Toronto Dominion Bank 0.14 0.15 0.09 0.34 1.00 18.00 Samsung 0.41 0.32 0.01 0.52 0.11 1.00 38.50 BP 0.15 -0.11 0.09 -0.08 -0.11 -0.10 1.00 46.40The index model has been estimated for stocks A and B with the following results: = 0.12 +0.670RM+еA RA= RB=0.04 +1.512RM + еB °M= 0.330 σ(eд) = 0.20 σ(eB) = 0.10 What is the covariance between each stock and the market index? (Round your answers to 4 decimal places.) Stock A covariance Stock B covarianceThe table below shows standard deviations and correlation coefficients for seven stocks from different countries. Calculate the variance of a portfolio with equal investments in each stock. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Round your answer to 4 decimal places.) \table[[,BHP,,,,Toronto,,],[,Billiton,Siemens,Nestlé,LVMH,Dominion Bank,Samsung,BP],[BHP Billiton,1.00,0.32,0.42,0.36,0.22,0.36,0.19],[Siemens,,1.00,0.33,0.22,0.19,0.36,-0.09],[Nestlé,,,1.00,0.12,0.13,0.05,0.13],[LVMH,,,,1.00,0.30,0.48,-0.04],[Toronto Dominion Bank,,,,,1.00,0.07,-0.07],[Samsung,,,,,,1.00,-0.06],[BP,22.00,33.80,44.80,20.30,14.00,34.50,42.40],[Standard deviation (%),,,,,,,]] Portfolio variance
- K (Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Probability 0.20 0.60 0.20 Common Stock B Return 13% 17% 18% Probability 0.10 0.40 0.40 0.10 (Click on the icon in order to copy its contents into a spreadsheet.) Return -7% 5% 16% 21% www a. Given the information in the table, the expected rate of return for stock A is 16.40 %. (Round to two decimal places.) The standard deviation of stock A is 1.74 %. (Round to two decimal places.) b. The expected rate of return for stock B is 9.8 %. (Round to two decimal places.) The standard deviation for stock B is 6.12 %. (Round to two decimal places.)(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Probability 0.20 0.60 0.20 Probability 0.15 0.35 0.35 0.15 (Click on the icon in order to copy its contents into a spreadsheet.) ew an example Get more help. T 3 a. Given the information in the table, the expected rate of retum for stock A is 15.6 %. (Round to two decimal places.) The standard deviation of stock A is %. (Round to two decimal places.) E D 80 73 Return. 12% 16% 18% U с $ 4 R F 288 F4 V Common Stock B % 5 T FS G 6 Return -7% 7% 13% 21% B MacBook Air 2 F& Y H & 7 N 44 F? U J ** 8 M | MOSISO ( 9 K DD O . Clear all : ; y 4 FIX { option [ + = ? 1 Check answer . FV2 } ◄ 1 delete 1 return shiftYou are given the following information: State ofEconomy Return onStock A Return onStock B Bear .112 −.055 Normal .105 .158 Bull .083 .243 Assume each state of the economy is equally likely to happen. a. Calculate the expected return of each stock. (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 of each stock. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the covariance between the returns of the two stocks? (A negative answer should be indicated by a minus sign, Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) d. What is the correlation between the returns of the two stocks? (A negative answer should be indicated by a minus sign, Do not round intermediate calculations and round your answer to 4…