« previous next »

Author Question: Kurtosis is a statistic of a data set that describes the symmetry of the data. Indicate whether ... (Read 105 times)

awywial

  • Hero Member
  • *****
  • Posts: 577
on: Jun 24, 2018
Kurtosis is a statistic of a data set that describes the symmetry of the data.
 
  Indicate whether the statement is true or false

Question 2

Continue to assume that the returns of the four stocks are no longer independent of one another, and the correlations between all pairs of stock returns are as given in the second question.
 
  Now, suppose that this investor decides to place 20,000 each in stocks B and D, and 10,000 each in stocks A and C. Find the mean and standard deviation of the total amount that this investor earns in one year from these four investments.


Sweetkitty24130

  • Sr. Member
  • ****
  • Posts: 291
Reply #1 on: Jun 24, 2018
Answer to Question 1

FALSE

Answer to Question 2

Covariances between stock returns (variances of stock returns are on the diagonal):
Stock A Stock B Stock C Stock D
Stock A 0.0025 0.0018 0.0012 -0.0017
Stock B 0.0018 0.0049 0.0013 -0.0013
Stock C 0.0012 0.0013 0.0009 -0.0014
Stock D -0.0017 -0.0013 -0.0014 0.0036

Weights (top row, left column) and values for calculating portfolio variance:
10,000 20,000 10,000 20,000
10,000 250000 350000 120000 -330000
20,000 350000 1960000 252000 -504000
10,000 120000 252000 90000 -270000
20,000 -330000 -504000 -270000 1440000

Summary measures of portfolio:
Mean 9,900.00
Variance 2976000
StDev 1,725.11


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Extent of agricultural activity across the planet (data from Foley et al. 2005). Extent of agricultural activity across the planet (data from Foley et al. 2005).
Prevalence of Diabetes in the United States Based on Age and Sex Data from the American Diabetes ... Prevalence of Diabetes in the United States Based on Age and Sex Data from the American Diabetes ...
How to fit an exponential model to data How to fit an exponential model to data
Data Used to Analyze Productivity in Country 1 and Country 2 Data Used to Analyze Productivity in Country 1 and Country 2
Data management short answer q Data management short answer q
Type III curve. Mortality is highest early in life. Data for a desert shrub (Cleome droserifolia). Type III curve. Mortality is highest early in life. Data for a desert shrub (Cleome droserifolia).
Video: Major Elements in Biological Molecules: Lipids

For a complete list of videos, visit our video library