1. If you own 200 shares of Xerox ai $17.54, 300 shares of Uwest all $8.35, and 100 shares of Liz Claiborne at 544.93, what are the portfolio weights of each stock ? (Round your answers to 3 decimal places.)
Portfolio weights
Xerox
Qwest
Liz Claiborne
2. The past rpm monthly returns for PG&E are -3.47 percent, 4.63 percent. 4.07 percent. 6.92 percent. and 3.88 percent. What is the average monthly return? (Round your answer to 3 decimal places.)
Average return
3. The past five monthly returns for PG&E are -3.21 percent. 4.13 percent, 3 87 percent, 612 percent, and 3.6 percent Compute the standard deviation of PG&Es monthly returns (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Standard deviation ____
4. The past &ye monthly returns for Kohl's are 3.64 percent, 3.87 percent. -1.78 percent, 9.30 percent, and -2.66 percent Compute the standard deviation of kohls' monthly returns. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Standard deviation ___
5. If you own 250 shares of Alaska Air at $66.88, 300 shares of Best Buy at $75.32, and 200 shares of Ford Motor at $9.51, what are the portfolio weights of each stock? (Round your answers to 3 decimal pfaces.)
Portfolio weights
Alaska Air
Best Buy
Ford Motor
6.
Table Average Returns for Bonds
|
|
|
Low-risk bonds |
|
1950 to 1959
|
Average
|
2.4%
|
|
1960 to 1969
|
Average
|
4.6
|
|
1970 to 1979
|
Average
|
|
|
1930 to 1989
|
Average
|
8.9
|
|
1990 to 1999
|
Average
|
4.7
|
|
2000 to 2009
|
Average
|
2.5
|
Table Annual Standard Deviation for T-Bills
|
|
Low-risk bonds |
|
1950 to 1959
|
1.1%
|
|
1960 to 1969
|
1.5
|
|
1970 to 1979
|
|
|
1930 to 1989
|
2.9
|
|
1990 to 1999
|
1.5
|
|
2000 to 2009
|
1.7
|
Calculate the coefficient of variation of the risk-return relationship (Use the above Tables) during each decade since 1950. (Round your answers to 2 decimal places.)
Decade CoV
1950s
1960s
1970s
1980s
1990s
2000s
7. Following are three economic states, their likelihoods: and the potential returns:
|
Economic State
|
Probability
|
Return |
|
Fast growth
|
0.19
|
30 |
|
Slow growth
|
0.42
|
13 |
|
Recession
|
0.3
|
-24 |
Determine the standard deviation of the expected return .(Round your answer to 2 decimal places.)
Standard deviation____
8. You own $19,084 of Human Genome stock that has an assumed beta of 3.55. You also own $13,212 of Frozen Food Express (assumed beta = 1.57) and $4,404 of Molecular Devices (assumed beta = 0.64)
What is the beta of your portfolio? (Do not round intermediate calculations and round your answer to 2 decimal places.)
Portfolio beta
9. You own $11,153 of Olympic Steel stock that has a beta of 1.98. You also own $20,545 of Rent-a-Center (beta = 1.58) and $27,002 of Lincoln Educational (heta = 0.73).
What is the beta of your portfolio? (Do not round intermediate calculation and round your answer to 2 decimal places.)
10. Following are three economic states: their likelihoods: and the potential returns:
|
Economic State
|
Probability
|
Return |
|
Fast growth
|
0.20
|
41 |
|
Slow growth
|
0.62
|
16 |
|
Recession
|
0.18
|
-34 |
Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.)