1.If you own 300 shares of Alaska Air at $42.88, 350 shares of Best Buy at $51.32, and 250 shares of Ford Motor at $8.51, what are the portfolio weights of each stock? Round your answers to 3 decimals places.
| Alaska Air |
|
| Best Buy |
|
| Ford Motor |
|
2. The past five monthly returns for Kohl's are 3.54 percent, 3.62 percent, -1.68 percent, 9.25 percent, and -2.56 percent. Compute the standard deviation of Kohls' monthly returns. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
3.Calculate the price of a zero coupon bond that matures in 20 years if the market interest rate is 4.5 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
4.
| Table 9.2 Average Returns for Bonds |
| |
|
Long-Term
Treasury Bonds
|
| 1950 to 1959 |
Average |
|
0.0 |
% |
| 1960 to 1969 |
Average |
|
1.6 |
|
| 1970 to 1979 |
Average |
|
5.7 |
|
| 1980 to 1989 |
Average |
|
13.5 |
|
| 1990 to 1999 |
Average |
|
9.5 |
|
| 2000 to 2009 |
Average |
|
8.0 |
|
| Table 9.4 Annual Standard Deviation for Bonds |
| |
Long-Term
Treasury Bonds |
| 1950 to 1959 |
|
4.9 |
% |
| 1960 to 1969 |
|
6.2 |
|
| 1970 to 1979 |
|
6.8 |
|
| 1980 to 1989 |
|
15.1 |
|
| 1990 to 1999 |
|
12.8 |
|
| 2000 to 2009 |
|
10.3 |
|
|
Calculate the coefficient of variation of the risk-return relationship of the bond market (Use the above Tables) during each decade since 1950. (Round your answers to 2 decimal places.)
|
| Decade |
CoV |
| 1950s |
Not defined |
| 1960s |
|
| 1970s |
|
| 1980s |
|
| 1990s |
|
| 2000s |