3. The returns on stocks A and B are 12% and 16%, respectively. The SD of the returns on stocks A and B are 31% and 12%, respectively. The beta of A is 0.7, while that of B is 1.4. The risk free rate over the period was 5%, the market’s average return was 13%. a. Calculate the Sharpe ratio for each stock (10 points). b. Calculate the alpha for each stock (10 points). c. Which stock is the best choice if this stock will be mixed with the rest of the investor’s portfolio, currently composed solely of holdings in the market-index fund (15 points).
Answers: 2
Business, 21.06.2019 21:30, szambrana
You invest all the money you earned during your summer sales job (a total of $45,000) into the stock of a company that produces fat and carb-free cheetos. the company stock is expected to earn a 14% annual return; however, 5 years later it is only worth $20,000. turns out there wasn't as much demand for fat and carb-free cheetos as you had hoped. what is the annual rate of return on your investment?
Answers: 1
Business, 22.06.2019 19:10, soevse
Fortress international, a large conglomerate, procures a few component parts from external suppliers and also manufactures some of the key raw materials in its own subsidiaries. aside from this, the company does not solely depend on outside distributors to reach its customers. in fact, it has its own retail stores to distribute its products. in this scenario, which of the following alternatives to vertical integration is fortress international applying? a. concentric integration b. taper integration c. horizontal integration d. conglomerate integration
Answers: 1
Business, 23.06.2019 01:30, upadrastakameswari
You need $87,000 in 12 years. required: if you can earn .54 percent per month, how much will you have to deposit today?
Answers: 2
3. The returns on stocks A and B are 12% and 16%, respectively. The SD of the returns on stocks A an...
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