Problemas cap 9 y 10

Respuestas a Problemas de Tarea:

CAPITULO 9

9.15
The expected return on Belinkie Enterprises stock is 5.75 percent.
The expected return on Overlake Company stock is 9 percent.
The variance of Belinkie Enterprises stock is 0.000421.
The variance of Overlake Company stock is 0.00115.

9.16
The average return on small-company stocks is 15.42 percent.
The average return on the marketindex is 16.04 percent.
The variance of the small-company returns is 0.1105467.
The standard deviation of the small-company returns is 0.33249.
The variance of the market index of common stocks is 0.2242168.
The standard deviation of the market index is 0.47352.

9.17
The average return on common stocks is 18.33 percent.
The variance of the common stock returns is 0.018372.
The averagereturn on small stocks is 20.90 percent.
The variance of the small stock returns is 0.029734.
The average return on long-term corporate bonds is 16.01 percent.
The variance of the long-term corporate bond returns is 0.029522.
The average return on long-term government bonds is 15.68 percent.
The variance of the long-term government bond returns is 0.02868.
The average return on the Treasurybills is 9.86 percent.
The variance of the Treasury bill returns is 0.00075.

9.18
The average return on small-company stocks is 8.95 percent.
The average return on U.S. Treasury bills is 6.63 percent.
The variance of small-company stocks is 0.0547.
The standard deviation of small-company stocks is .2340.
The variance of small-company stocks is 0.000143.
The standard deviation ofsmall-company stocks is 0.0119.
The average return on Treasury bills is lower than the average return on small-company stocks. However, the standard deviation of the returns on Treasury bills is also lower than the standard deviation of the small-company stock returns. There is a positive relationship between the risk of a security and the expected return on a security.

9.19
The range in which 95percent of the returns will fall is between 0.5 percent and 34.5 percent.

CAPITULO 10.

10.1
The expected return on Q-mart’s stock is 10.57%.
The standard deviation of Q-mart’s returns is 7.20%.

10.2
The expected return on Stock A is 10.80%.
The expected return on Stock B is 9.33%.
The standard deviation of Stock A’s returns is 3.80%.
The standard deviation of Stock B’s returns is 12.02%.The covariance between the returns of Stock A and Stock B is 0.004539.
The correlation between the returns on Stock A and Stock B is 0.9937.

10.3
The expected return on Highbull’s stock is 7.33%.
The expected return on Slowbear’s stock is 6.08%.
The standard deviation of Highbear’s stock returns is 5.80%.
The standard deviation of Slowbear’s stock returns is 0.75%.
The covariancebetween the returns on Highbull’s stock and Slowbear’s stock is 0.000425.
The correlation between the returns on Highbull’s stock and Slowbear’s stock is 0.9770.

4.
The weight of Atlas stock in the portfolio is 2/3.
The weight of Babcock stock in the portfolio is 1/3.

5.
The expected return on a portfolio composed of 30% of Security F and 70% of Security G is 16.20%.
If the correlationbetween the returns of Security F and Security G is 0.2, the standard deviation of the portfolio is 18.23%.

6.
The expected return on a portfolio composed of 40% stock A and 60% stock B is 21%.
If the correlation between the returns on Stock A and Stock B is 0.5, the standard deviation of the portfolio is 14.42%.
If the correlation between the returns on Stock A and Stock B is -0.5, thestandard deviation of the portfolio is 10.58%.
As Stock A and Stock B become more negatively correlated, the standard deviation of the portfolio decreases.

10.7
The expected return on her portfolio is 18%.
The standard deviation of her portfolio is 13.54%.
The expected return on her portfolio is 16.67%.
The standard deviation of her portfolio is 10.00%.

10.8
The expected return on...