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Question 12 (Mandatory) (1 point) If you have the historical returns on stock A, the returns...
Suppose you have collected the following historical returns for 2 stocks (Stock A and Stock B)....
Suppose you have collected the following historical returns for 2 stocks (Stock A and Stock B). Your task is to summarize the data using the following statistical measures: expected return, variance, standard deviation, covariance, and correlation. Stock A Stock B 2010 0.10 0.07 2009 -0.02 0.01 2008 0.08 -0.03 Estimate the expected return for each stock. In a short description, what do these numbers represent? (For the quiz, provide the expected return for Stock A.) Estimate the return variance and...
15% 0% TU) You are given Tollowing intornation: Market Scenario Probability cp) Stock A's Returns Stock...
15% 0% TU) You are given Tollowing intornation: Market Scenario Probability cp) Stock A's Returns Stock B's Returns Market Index Returns 25% 0% 10.2 18% 10% 0.3 10% 8% 10.2 112% 10% 0.2 16% -4% Additional information: Standard Deviation: Stock A =10.67%; Stock B - 5%; Market Index - 6.02% Covariances: Cov(Stock A & Market Index) - 64.15 or 0.006415; Cov(Stock B & Market Index) = 30 or 0.003000; Cov(Stock A & Stock B) = -53.20 or -0.005320; Prote=27 a)...
HUISWer Question 7 (1 point) Suppose the covariance between the returns of the stock GHI and...
HUISWer Question 7 (1 point) Suppose the covariance between the returns of the stock GHI and the returns to the market is 0.00064 and the standard deviation of market returns is 0.030. What is the beta of the stock? (Note: Here the actual numbers rather than percentages are given. So give your answer as an actual number rather than a percentage etc.) Your Answer: Answer Question 8 (1 point) Saved
The standard deviation of stock returns for Stock A is 31%. The standard deviation of the...
The standard deviation of stock returns for Stock A is 31%. The standard deviation of the market return is 24%. If the correlation between Stock A and the market is 0.40, then what is Stock A's beta? Round your answer to two decimal places.
Question 3 (total of 20 marks): Refer to the below table to answer the questions that follow. Assume that returns are e...
Question 3 (total of 20 marks): Refer to the below table to answer the questions that follow. Assume that returns are effective annual rates Year Return on Stock A Return on Market 2007 35% 15% 2008 -35% -25% 2009 15% 40% Question 3a (1 marks): What is stock A's expected return? Question 3b (1 marks): What is the market's expected return? Question 3c (4 marks): What is the sample standard deviation of stock A's returns? buestion 3d (4 marks): What...
Question 6 (1 point) A stock has a beta of 2.4, the market expected return is...
Question 6 (1 point) A stock has a beta of 2.4, the market expected return is 8% and the riskfree rate is 2%. What is the expected rate of return according to CAPM? Express your answer as a percentage, for example 3.18% should be entered as 3.18 without the percentage sign. Your Answer: Answer Question 7 (1 point) Suppose the covariance between the returns of the stock GHI and the returns to the market is 0.00064 and the standard deviation...
Stocks A and B have the following historical returns: Year Stock A's Returns, A Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, A Stock B's Returns, re 2011 - 23.40% 15.7094 2012 31.50 29.30 2013 17.75 28.40 2014 - 1.50 - 12.80 2015 29.00 24.15 .. Calculate the average rate of return for stock A during the period 2011 through 2015. Round your answer to two decimal places. Calculate the average rate of return for stock B during the period 2011 through 2015. Round your answer to two decimal...
The historical returns for the past three years for Stock B and the stock market were...
The historical returns for the past three years for Stock B and the stock market were the following: Stock B: 2016: 24%, 2017: 0%, 2018: 24%; market return: 2016: 10%, 2017: 12%, 2018: 20%. Calculate the beta for Stock B. a. 0.86 b. 1.00 c. 1.17 d. 1.13
Question 8 (1 point) Horse Stock returns have exhibited a standard deviation of 0.57, whereas Mod...
Question 8 (1 point) Horse Stock returns have exhibited a standard deviation of 0.57, whereas Mod T Stock returns have a standard deviation of 0.63. The correlation coefficient between the returns is 0.078042. What is the covariance of the returns? Round your answer to six decimal places.
REALIZED RATES OF RETURN Stocks A and B have the following historical returns: Stock B's Returns,...
REALIZED RATES OF RETURN Stocks A and B have the following historical returns: Stock B's Returns, rs Stock A's Returns, rA Year - 13.50 % -15.00% 2011 19.60 31.75 2012 32.10 12.00 2013 -10.80 -4.00 2014 24.85 27.50 2015 a. Calculate the average rate of return for stock A during the period 2011 through 2015. Round your answer to two decimal places. % Calculate the average rate of return for stock B during the period 2011 through 2015. Round your...
15% 0% TU) You are given Tollowing intornation: Market Scenario Probability cp) Stock A's Returns Stock B's Returns Market Index Returns 25% 0% 10.2 18% 10% 0.3 10% 8% 10.2 112% 10% 0.2 16% -4% Additional information: Standard Deviation: Stock A =10.67%; Stock B - 5%; Market Index - 6.02% Covariances: Cov(Stock A & Market Index) - 64.15 or 0.006415; Cov(Stock B & Market Index) = 30 or 0.003000; Cov(Stock A & Stock B) = -53.20 or -0.005320; Prote=27 a)...
HUISWer Question 7 (1 point) Suppose the covariance between the returns of the stock GHI and the returns to the market is 0.00064 and the standard deviation of market returns is 0.030. What is the beta of the stock? (Note: Here the actual numbers rather than percentages are given. So give your answer as an actual number rather than a percentage etc.) Your Answer: Answer Question 8 (1 point) Saved
Question 3 (total of 20 marks): Refer to the below table to answer the questions that follow. Assume that returns are effective annual rates Year Return on Stock A Return on Market 2007 35% 15% 2008 -35% -25% 2009 15% 40% Question 3a (1 marks): What is stock A's expected return? Question 3b (1 marks): What is the market's expected return? Question 3c (4 marks): What is the sample standard deviation of stock A's returns? buestion 3d (4 marks): What...
Question 6 (1 point) A stock has a beta of 2.4, the market expected return is 8% and the riskfree rate is 2%. What is the expected rate of return according to CAPM? Express your answer as a percentage, for example 3.18% should be entered as 3.18 without the percentage sign. Your Answer: Answer Question 7 (1 point) Suppose the covariance between the returns of the stock GHI and the returns to the market is 0.00064 and the standard deviation...
Stocks A and B have the following historical returns: Year Stock A's Returns, A Stock B's Returns, re 2011 - 23.40% 15.7094 2012 31.50 29.30 2013 17.75 28.40 2014 - 1.50 - 12.80 2015 29.00 24.15 .. Calculate the average rate of return for stock A during the period 2011 through 2015. Round your answer to two decimal places. Calculate the average rate of return for stock B during the period 2011 through 2015. Round your answer to two decimal...
Question 8 (1 point) Horse Stock returns have exhibited a standard deviation of 0.57, whereas Mod T Stock returns have a standard deviation of 0.63. The correlation coefficient between the returns is 0.078042. What is the covariance of the returns? Round your answer to six decimal places.
REALIZED RATES OF RETURN Stocks A and B have the following historical returns: Stock B's Returns, rs Stock A's Returns, rA Year - 13.50 % -15.00% 2011 19.60 31.75 2012 32.10 12.00 2013 -10.80 -4.00 2014 24.85 27.50 2015 a. Calculate the average rate of return for stock A during the period 2011 through 2015. Round your answer to two decimal places. % Calculate the average rate of return for stock B during the period 2011 through 2015. Round your...
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