Solved: What is the factor risk of the portfolio, Basic Statistics

+44 141 628 6080
[email protected]

What is the factor risk of the portfolio

On the basis of a one factor model, consider a portfolio of two securities with the following characteristics:

Security Factor Sensitivity Nonfactor risk proportion

A .20 49 .40
B 3.50 100 .60

Question 1: If the standard deviation of the factor is 15%, what is the factor risk of the portfolio?

Question 2: What is the nonfactor risk of the portfolio?

Question 3: What is the portfolio's standand deviation?

View Complete Question

Solution Preview :

Prepared by a verified Expert

Basic Statistics: What is the factor risk of the portfolio

Reference No:- TGS01617249

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Basic Statistics

Q : Component of the product mix

Generico has been manufacturing videotapes since 1982. The 3-hour VHS format is by far the largest component of their product mix.

Q : Target segment spend annually

Suppose that a business researcher is attempting to estimate the amount that members of a target segment spend annually on detergent and wants to use a Z-value of 1.96.

Q : Regression equation-regression line

Question: If the regression equation is equal to 23.6 - 54.2X, then 23.6 is the _______ while -54.2 is the ______ of the regression line.

Q : Business research methods problem

Problem: If the Z-statistic produces a value of Z of 2.45 when the critical value for Z at the .05 level is 1.96, the decision should be what?

Q : What is the factor risk of the portfolio

Question 1: If the standard deviation of the factor is 15%, what is the factor risk of the portfolio? Question 2: What is the nonfactor risk of the portfolio?

Q : Common measures of forecast accuracy

Three of the most common measures of forecast accuracy are: mean error, mean square error, and mean absolute percentage error.

Q : Netflix culture-freedom and responsibility

Case Study Background Information Employees describe Sharon as a fair but firm—a "tough cookie"—who can hold her own in almost any setting.

Q : Degree of legal vulnerability

Legal vulnerability: You should also consider the degree of legal vulnerability the company has in this situation. For example, what is the probability that Alice Jones could sue for age discrimination?

Q : Compensation program for international personnel

Due to the increased globalization of your business, management has asked you to design a compensation program for international personnel. Individuals will be coming to the United States and traveling from the United States to other countries.

1949236

Questions
Asked

3,689

Active Tutors

1413479

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Basic Statistics: What is the factor risk of the portfolio

Reference No:- TGS01617249

Have a Question? (oR Write a Review)

Recent Questions Asked Basic Statistics

Q : Component of the product mix

Q : Target segment spend annually

Q : Regression equation-regression line

Q : Business research methods problem

Q : What is the factor risk of the portfolio

Q : Common measures of forecast accuracy

Q : Netflix culture-freedom and responsibility

Q : Degree of legal vulnerability

Q : Compensation program for international personnel

What vision for the future of society involves

Compute gain recognized in the year of sale

Why european colonial societies were shaped by dissent

Amazon fulfillment supply chain and it logistics full proces

Analyzing the application of analytics in optimizing supply

Interactive-system explanations in socialist feminism

Illustrate the idea of cultural relativism

Solution Preview :

Prepared by a verified Expert

Basic Statistics: What is the factor risk of the portfolio

Reference No:- TGS01617249

Recent Questions Asked Basic Statistics

Q : Component of the product mix

Q : Target segment spend annually

Q : Regression equation-regression line

Q : Business research methods problem

Q : What is the factor risk of the portfolio

Q : Common measures of forecast accuracy

Q : Netflix culture-freedom and responsibility

Q : Degree of legal vulnerability

Q : Compensation program for international personnel

Asked Questions