Skip to main content

Featured

Adorable Pink Keyboard and Mouse Review (It Has Typewriter Keys)

Photo Source: Author Photo Source: Amazon While FD's pink wireless keyboard and mouse are adorable and definitely aesthetic, the set has some serious issues. Here's my review of Amazon's pink MoMoOne Wireless Keyboard and Mouse combo. Note: this pink keyboard and mouse set is currently sold out, but the blue and white version is available. I ended up not loving this product, and bought this replacement pink keyboard instead. If you are looking for a keyboard and mouse combo that is stylish and functional, the FD Wireless Keyboard Mouse Combos Set is the perfect option. This set is designed for both PC and Mac users. The keyboard has a slim design that makes it easy to take with you on the go, and the mouse has an ergonomic design that provides extra comfort. Plus, this keyboard and mouse combo set is very affordable at $35. Aesthetics The aesthetic light pink color on both the keyboard and mouse is adorable. I love it. Honestly, if the keyboard and mouse worked as well
Post a Comment
Read more
Labels

A Case on Portfolio Risk and Return - UMGC Fin - Case Study Individual 2

Woman in a seafoam green sweater, sits on the couch while on a laptop.

 

This article was originally submitted as an academic paper to UMGC. It has been posted here for educational purposes only. Don't be a dummy. If you found this with Google, then so will turn it in.

The questions for this UMGC/UMUC assignment come fro Halil D. Kaya's paper, A Case on Portfolio Risk and Return, published in the International Research Journal of Applied Finance, Vol. VII Issue - 10, October, 2016. ISSN 2229-6891.


Case Study-Individual 2

State         Probability         A         B        C        D

Recession        15%            (10%)        (3%)        0        2%

Normal        40%            15%        12%        9%        7%

Expansion        45%            20%        15%        12%        8%

Wa=50%,     Wb=20%, Wc=10%, Wd=30%

  1. What is the expected return on this portfolio under each state of economy (i.e. recession, normal, and expansion)?

Recession= 0.50(-10%) +0.20(-3%) +0.10(0) +0.30(2) s= (0.5%)

Normal=      0.50(15%) + 0.20(12%) +0.10(9%) +0.30(7%) = 12.9%

Expansion= 0.50(20%) + 0.20(15%) +0.10(12%) +0.30(8%) = 16.6%

  1. What is the expected overall portfolio return? 

E(Rp)=0.15(-0.5%)+0.40(12.9%)+0.45(16.6%)

E(Rp)= 12.555%

  1. What is the risk (i.e. standard deviation) of this portfolio?

σp = SQRT [0.15(-0.5-12.555)2 + 0.40(12.9-12.555)2 + 0.45(16.6-12.555)2 

= SQRT [25.565 + 0.04761+ 7.363]

=SQRT [32.98]

= 5.74.

  1. What are the expected returns on individual stocks (E(R)A, E(R)B, E(R)C, E(R)D)?

E(R)A = (0.15)(-10%) + (0.40)(15%) + (0.45)(20%) = 13.5%

E(R)B = (0.15)(-3%) + (0.40)(12%) + (0.45)(15%) = 11.1%

E(R)C = (0.15)(0%) + (0.40)(9%) + (0.45)(12%) = 9%

E(R)D = (0.15)(2%) + (0.40)(7%) + (0.45)(8%) = 6.7%


  1. Which stock has the highest expected return? Which one has the highest expected risk?

 Stock A has the highest expected return at 13.5% compared to other stocks with lower expected return. 

 Stock A has the highest expected risk with standard deviation of 13.37. 

Computation of risks for each stock 

σ2A = SQRT [0.15(-0.10 – 13.5)2 + 0.40(0.15 – 13.5)2 + 0.45(0.20 – 13.5)2] = 13.37

σ2B = SQRT [0.15(-0.03 – 11.1)2 + 0.40(0.12 – 11.1)2 + 0.45(0.15 – 11.1)2] = 10.99

σ2C = SQRT [0.15(0 - 9)2 + 0.40(0.09 – 9)2 + 0.45(0.12 – 9)2] = 8.91

σ2D = SQRT [0.15(0.02 – 6.7)2 + 0.40(0.07 – 6.7)2 + 0.45(0.08 – 6.7)2] = 6.63

  1. She wants to use the expected returns on individual stocks (E(R)A, E(R)B, E(R)C, E(R)D) in an equation to find the expected return on this portfolio. How does she do that? Will she find the same expected return here as she finds in #2?

One approach for using the expected return on the individual stocks to get the expected return for the portfolio is to take the individual returns and compute the average.

 The equation would be as follows.

Sum of 13.5% + 11.1% + 9% + 6.7% = 40.3% 

40.3% / 4 = 10.1%

 The expected return obtained here is not equal to the one obtained in question 2 because the individual stocks have diverse standard deviations.


If this was helpful, check out my other homework help articles that include other academic paper examples.




 

Labels:

Comments

Post a Comment

Popular Posts