You are comparing three firms over a period of several years…
You are comparing three firms over a period of several years. Firm A displayed average returns of 45% with a standard deviation of 15, Firm B displayed average returns of 50% with a standard deviation of 16.5, and Firm C displayed average returns of 47% with a standard deviation of 16. Which firm had greater variability in earnings based on the coefficient of variation?
Read DetailsAssume that the correlation coefficient were .5 instead of -…
Assume that the correlation coefficient were .5 instead of -.35. Would this increase or decrease the overall portfolio standard deviation (holding expected return and standard deviation and weighting of each fund constant from the previous question)?
Read DetailsYou purchased 100 shares of Facebook for $75/share and the s…
You purchased 100 shares of Facebook for $75/share and the stock is currently worth $125/share. You are not ready to sell the stock yet, but you are concerned about maintaining your current position. If you wanted to ensure that your losses in the event of a decline in price were limited to about $10 a share, what type of order should you place?
Read Details