Roulette Enterprises expects to pay a perpetual annual dividend of 65c. The beta of their stock has been calculated ex-post to be 0.8. If the market-risk premium and risk free rate were 8% p.a. and 7% p.a. respectively, what is the highest price an investor would pay for their shares?
Lancelot Fund Management has found the Holy Grail; a mean-variant efficient portfolio of stocks with an expected return of 25% p.a., a beta of 1.5 and a standard deviation of expected returns of 20% p.a. If the risk free rate is 7% p.a., deduce the expected market return and standard deviation.
Expected return and standard deviation of two stocks with returns stated for different states of economy- Recession, Normal, Boom
Based on the attached information, calculate the expected return and standard deviation for the two stocks. Probability of State of Economy Stock P Rate of Return Stock Q Rate of Return State of Economy Recession 0.15 0.04
Consider the information on the attached spreadsheet. a. Your portfolio is invested 35% each in A and C, and 30% in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation? Problem 11-10 Rate of Return, if State Occurs Probability of St
Using the following returns, calculate the average returns, the variances, and the standard deviations for X and Y. See attached spreadsheet for the data. Prob #7 RETURNS Year X Y 1 10% 26% 2 18 -4 3 -8 -10 4 12 42 5 6 21