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the following represents the probability distribution for the rates of return for next monthprobabilitypfio p market
download the historical prices for the sampp 500 index spx or gspc and for vpacx the vanguard pacific stock index
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formula noted that the minimum-variance portfolio without a risk-free asset invests about 762 in h and about 248 in i
1 would the tangency portfolio invest in more or less h if the risk-free rate were 3 instead of 4 hint think visually2
1 broadly speaking what was the average risk of cash bonds and stocks what time period are your numbers from2 how good
1 what happens if you compute the average deviation from the mean rather than the average squared deviation from the
1 you estimate your project x to return -5 if the stock market returns -10 and 5 if the stock market returns 10 what
lets check that the beta combination formula is correct let me lead you alonga write down a table with the rate of
lets confirm that you cannot take a value-weighted average of component variances and thus of standard deviations the
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the following were the closing year-end prices of the japanese stock market index the nikkei- 225assume that each
1 compute the value-weighted average of 13 of the standard deviation of c and 23 of the standard deviation of d is it
consider the following five assets which have rates of return in six equally likely possible scenariosa assume you can
1 why is it so common to use historical financial data to estimate future market betas2 is it wise to rely on
1 a bond will pay off 100 with probability 99 and will pay off nothing with probability 1 the equivalent risk-free rate
go to the vanguard website look at funds by asset class and answer this question for different bond fund durationsa
an ibm bond promising to pay 100000 costs 90090 time-equivalent treasuries offer 8a setting aside the risk neutrality
1 how is a credit swap like an insurance contract who is the insurer in a credit swap why would anyone want to buy such
a project costs 19000 and promises the following cash flowsyear123cash flows1250060003000the appropriate discount rate