A. Ex-Post Standard Deviation A stock had historical monthly returns of -3%, 1%,
ID: 2619374 • Letter: A
Question
A. Ex-Post Standard Deviation A stock had historical monthly returns of -3%, 1%, 1.50%, 2%,-2% and 4%. Based on this data, the stock would have an annual expected return of ______ and an annual standard deviation of ______.
B. Portfolio Returns Suppose you have $9,800 invested in a stock portfolio in October. You have $4,600 invested in Stock A, $3,100 in Stock B and $2,100 in Stock C. The HPR for the month of September for Stock A was 2.4%, for Stock B the HPR was -5.4% and for Stock C the HPR was 3.9%. What was the average HPR for the portfolio for the month of October?
C. Ex-Ante Standard Deviation An analyst estimates a 27% probability of a recession next year, a 51% probability of normal economic growth and a 22% probability of a strong recovery. If a recession occurs a stock is projected to have a -16.2% return. With normal growth the stock will generate a 11.2% return and if the strong recovery occurs the stock will have a 26.2% rate of return. This stock's standard deviation is _______.
A. Ex-Post Standard Deviation A stock had historical monthly returns of -3%, 1%, 1.50%, 2%,-2% and 4%. Based on this data, the stock would have an annual expected return of ______ and an annual standard deviation of ______.
B. Portfolio Returns Suppose you have $9,800 invested in a stock portfolio in October. You have $4,600 invested in Stock A, $3,100 in Stock B and $2,100 in Stock C. The HPR for the month of September for Stock A was 2.4%, for Stock B the HPR was -5.4% and for Stock C the HPR was 3.9%. What was the average HPR for the portfolio for the month of October?
C. Ex-Ante Standard Deviation An analyst estimates a 27% probability of a recession next year, a 51% probability of normal economic growth and a 22% probability of a strong recovery. If a recession occurs a stock is projected to have a -16.2% return. With normal growth the stock will generate a 11.2% return and if the strong recovery occurs the stock will have a 26.2% rate of return. This stock's standard deviation is _______.
Explanation / Answer
A.
B.
return = 0.25%
C.
Standard dev = 15.34%
-3.0% 1.0% 1.5% 2.0% -2.0% 4.0% average 0.58% std dev 2.6157%Related Questions
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