XYZ Corp. Annual Stock Prices 2003 = 2004 += 2005-2006 = 2007-2008 22% 5% ~7% = 11% 2% 11% Whar is the median return for XYZ stock? A. 7.3%. B. 8.0%. C. 11.0%. Assuming that the distribution of XYZ stock returns is a population, what is the population variance? A. 6.8%? B. 7.7%. C. 80.2%, Assuming that the distribution of XYZ stock returns is a population, what is the population standard deviation? A. 5.02%. B. 8.96%. C. 46.22%Porfoio Mean Return Variance of E(R) returns Portfolio A 10% 625 Portfolio B 14% 900 Portfolio C 16% 1250 Portfolio D 19% 2000 She has been asked to evaluate the portfolios’ risk and return characteristics. Assume that a risk-free investment will carn 5%. A. Which portfolio would be preferred based on the Sharpe performance measure? ‘What is the expected value, variance, and covariance(s) for a portfolio that consists of $400 in Asset A and $600 in Asset B? The joint probabilities of the returns of the two assets are in the following figure. Probability Table Joint Probabilities Ry= 0.40 R, 20 0.15 0 0 Ry= 0.15 ° 0.60 0Consider a portfolio of three assets, X, Y, and Z, where the individual market value of these assets is $600, $900, and $1,500, respectively. The market weight, expected return, and variance for the individual assets are presented below. The correlation matrix for the asset returns are shown in the following figure. Using this information, compute the variance of the portfolio return. E(Ry) = 0.10 Var(Ry) = 0.0016 wy = 0.2 F(R) =0.12 — Var(Ry) = 0.0036 wy = 0.3, E(R,) = 0.16 Var(R,) = 0.0100 wz =0.5 Stock X, Y, and Z Returns Correlation Correlation Matrix Returns Ry Ry Ry Ry 0.46 1.00 0.64 R, 0.22 0.64 = 1.00