An analyst observes that the historic geometric nominal return for equities is 9%. Given a real return of 1% for riskless Treasury bills and annual inflation of 2%, the real rate of return and risk premium for equities are closest to: 7.9% ...
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An analyst gathered the following data for Stock A and Stock B: Time Period Stock A Returns Stock B Returns 1 10% 15% 2 6% 9% 3 8% 12% What is the covariance for this portfolio? A) 6. B) 12.
can someone explain how to cal. the last part of the equation (covarance part).
Pls explain why answer B is wrong
Sir told formula for M²: (Sharpe ratio)(market sd) + (Rm-Rf) Core says M² = (Sharpe ratio)(market sd) + Rf Which one should I follow?
With respect to an equally weighted portfolio made up of a large number of assets, which of the following contributes the most to the volatility of the portfolio? Average variance of the individual assets. Standard deviation of the individual assets. Average covariance between all pairs ...
Can someone explain the meaning of highlighted portion
Which of the following portfolios of risky assets is most likely the global minimum-variance portfolio? Portfolio Expected Return Standard Deviation A 5% 20% B 8% 33% C 3% 20% Portfolio C Portfolio A Portfolio B
An investment in 10,000 common shares of a company for one year earned a 15.5% return. The investor received a $2,500 dividend just prior to the sale of the shares at $24 per share. The price that the investor paid ...
Please explain……? the right choice is option number A