1. Arithmetic mean= (14.3+ 16.16 + 13.9 + 13.06 + 14.63 + 15.8)/6 = 14.6417
2. Variance = [(14.3)^2 + (16.16)^2 + (13.9)^2 + (13.06)^2 + (14.63)^2 + (15.8)^2]/6 - (arithmetic mean)^2
=( 204.49 + 261.1456 + 193.21 + 170.5636 + 214.0369 + 249.64)/6 - 214.3794 =1.13495
Standard deviation = 1.0653 ( square root of variance).
Problem 5 Intro The following table shows historical end-of- year prices for two non-dividend-paying stocks. ТА...
Problem 4 Intro The following table shows rates of return for a mutual fund and the market portfolio (S&P 500). C А В 1Year Fund Market 2 1 14% 13% -15% -14% 3 2 4 3 -6% -5% 5 5% 28% 14% 8% 6 5 7 6 8% 5% Attempt 1/10 for 10 pts. Part 1 What is the arithmetic average return for the market portfolio? 3+ decima Submit Attempt 1/10 for 10 pts. Part 2 What is the covariance...
Problem 14 44ゆ Intro Apple stock had a return of 11%two years ago, and 22% last year. Google stock had a return of 12% two years ago, and 13% last year. Attempt 1/10 for 10 pts Part 1 Ifyou invest 30% in Apple and 70% in Google, what is the expected return of your porttolo for next year, if you use the past as a guide for the future (which is generally not a good idea for calculating expected returns)?...
Problem 14 Intro Apple stock had a return of 11%two years ago, and 22% last year. Google stock had a return of 12% two years ago, and 13% last year. Attempt 1/10 for 10 pts. Part 1 lf you invest 30% in Apple and 70% in Google, what is the expected return of your portfolio for next year, if you use the past as a guide for the future (which is generally not a good idea for calculating expected returns)?...
Problem 2 Intro We know the following expected returns for stocks A and B.glven different states of the economy: 0.04 State (s) Probability E(ra) Ers,s) Recession 0.2 -0.1 Normal 0.5 0.08 0.05 Expansion 0.3 0.18 0.07 - Attempt 1/5 for 10 pts. Part 1 What is the expected return for stock A? 3+ decimals Submit Attempt 175 for 10 pts. Part 2 What is the expected return for stock B? Submit Problem 9 Intro You have $100,000 to invest and...
Intro The table below shows information for 3 stocks. Security Beta Risk-free rate Expected market return 1.8 Stock 1 0.02 0.06 1.2 Stock 2 0.035 0.06 Stock 3 0.4 0.015 0.06 The risk-free rates are different because they were measured in different years. Calculate the expected (or required) return for each stock, using the Capital Asset Pricing Model (CAPM). Part 1 B Attempt 1/5 for 10 pts. What is the expected return for stock 1? 3+ decimals Submit Part 2...
Problem 10 Intro You've collected the following information for three stocks: Shares Price Stock (million) 2018 2019 A 85 139 115 B 138 93 98 с 300 46 62 Part 1 Attempt 1/10 for 10 pts. What is the relative change in a price-weighted index? Enter your answer as a decimal number or with the percentage sign. 4+ decimals Submit Part 2 Attempt 1/10 for 10 pts. What is the relative change in a market value-weighted index? Enter your answer...
Problem 3 Intro The return statistics for two stocks and T-bills are given below: B C D T- 2 Expected return 3 Variance 4 Standard deviation 5 Covariance Stock A Stock B bills 0.094 0.064 0.02 0.1225 0.0729 0.35 0.27 0.02835 Part 1 | Attempt 1/10 for 10 pts. What is the Sharpe ratio of a portfolio with 70% invested in stock A and the rest in stock B? B+ decima Submit
Problem 9 Intro You have $100,000 to invest and want to choose between two stocks and the risk-free asset. Security Stock 1 Stock 2 Risk-free asset E() 0.0881 0.0807 0.04 Beta Investment 1.3 $20,000 1.1 ? You want your portfolio to be as risky as the market overall. Part 1 Attempt 1/5 for 10 pts. What is the expected return of your portfolio? 3+ decimals Submit