Computers and Technology, 14.02.2020 19:33 21hendlill

Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 1.0% + 0.45RM + eA RB = –1.0% + 1.00RM + eB σM = 16%; R-squareA = 0.28; R-squareB = 0.21 Assume you create a portfolio Q, with investment proportions of 0.50 in a risky portfolio P, 0.30 in the market index, and 0.20 in T-bill. Portfolio P is composed of 60% Stock A and 40% Stock B. a. What is the standard deviation of portfolio Q? (Calculate using numbers in decimal form, not percentages. Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the beta of portfolio Q? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is the "firm-specific" risk of portfolio Q? (Calculate using numbers in decimal form, not percentages. Do not round intermediate calculations. Round your answer to 4 decimal places.) d. What is the covariance between the portfolio and the market index? (Calculate using numbers in decimal form, not percentages. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers: 3

Show answers

Another question on Computers and Technology

Computers and Technology, 22.06.2019 22:30

You are new to microsoft certification and want to start out by getting a certification geared around windows 8. what microsoft certification should you pursue?

Answers: 1

Answer

Computers and Technology, 23.06.2019 00:00

Donna and her team of five have invented a new gadget for the science exhibition in their college. which intellectual property right will protect their invention?

Answers: 1

Answer

Computers and Technology, 23.06.2019 11:30

Me dangers of social media and the internetexplain what each means: 1) social media and phones have become an addiction.2) outside people have access to you all the time.3) cyberstalking4) cyberbullying5) catphishing6) viruses7) identity theft8) credit card fraud9) hacking10) money schemes

Answers: 1

Answer

Computers and Technology, 23.06.2019 14:30

Select the correct answer. sean is a computer programmer. he has programmed an application for toddlers that plays nursery rhymes. however, a logic error has occurred in the program. which problem is a likely consequence of the error? a. the program crashes every time the user wants to play the nursery rhymes. b. the program crosses its buffer boundaries and overwrites an adjacent program. c. the program plays a different nursery rhyme than the one the user intended to play. d. the program shows different structures in its programming language code. e. the program introduces new viruses every time the user plays a nursery rhyme.

Answers: 1

Answer

You know the right answer?

Suppose that the index model for stocks A and B is estimated from excess returns with the following...

Questions