# calculate and some definition questions for accounting

here are 10 questions, some need to calculate and some questions you need to think and choose correct answer. Please Highlight answers. Thank you!
finance_5.docx

Unformatted Attachment Preview

Don't use plagiarized sources. Get Your Custom Essay on
calculate and some definition questions for accounting
Just from \$13/Page

1.
Asset (B)
Asset (A)
E(RA) = 10%
E(RB) = 14%
sA= 7%
sB = 8%
WA = 0.7
WB = 0.3
COVA,B = 0.0013
What is the standard deviation of this portfolio?
2. Semivariance, when applied to portfolio theory, is concerned with
a. The square root of deviations from the mean.
b. All deviations below the mean.
c. All deviations above the mean.
d. All deviations.
e. The summation of the squared deviations from the mean.
3. A portfolio is considered to be efficient if:
a. No other portfolios offers higher expected returns with the same risk.
b. No other portfolio offers lower risk with the same expected return.
c. There is no portfolio with a higher return.
d. Choices a and b
e. All of the above
4. Given a portfolio of stocks, the curve containing the set of best possible
combinations is knowns as the
Efficient portfolio.
Utility curve.
Efficient frontier.
Last frontier.
Capital asset pricing model.
5. Between
1980 and 1990, the standard deviation of the returns for the
NIKKEI and the DJIA indexes were 0.19 and 0.06, respectively, and the
covariance of these index returns was 0.0014.
What was the correlation
coefficient between the two market indicators?
6. The most important criteria when adding new investments to a portfolio is the
a. Expected return of the new investment.
b. Standard deviation of the new investment.
c. Correlation of the new investment with the portfolio.
d. Both a and b
e. All of the above are equally important.
7. You are considering two assets with the following characteristics.
E(R1) =
0.15
E(s1) =
0.10
W1 =
0.5
E(R2) =
0.20
E(s2) =
0.20
W2 =
0.5
Compute the mean and standard deviation of two portfolios if r1,2 = -0.60.
Mean = 17.5%
Standard deviation =
.11445
Mean = 17.5%
Standard deviation =
.08062
Mean = 15%
Standard deviation =
.08062
Mean = 15%
Standard deviation =
.11445
8. What is the expected return of the three stock portfolio described below?
Common Stock
Ando Inc.
Bee Co.
Cool Inc.
18.45
%
12.82
%
13.38
%
15.27
%
16.67
%
Market Value
95,000
32,000
65,000
Expected Return
12.0%
8.75%
17.7%
9. A portfolio manager has the following portfolio:
Expected
Expected
Security
Standard
Return
Deviation
1
16%
20%
2
12%
20%
If the portfolio of the two securities has an expected return of 15%, the proportion
invested in security 1 is:
25%
.
50%
.
75%
.
30%
.
10. A positive covariance between two variables indicates that
the two variables move in different
directions.
the two variables move in the same direction.
the two variables are low risk.
the two variables are high risk.
the two variables are risk free.

attachment

Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

## Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.