Homework Answers
Volatility is also called as Standard deviation. It is a measure of risk.
We can calculate volatility in excel,
| Yr | Return |
| 2000 | -14.60% |
| 2001 | 4.10% |
| 2002 | -58.10% |
| 2003 | 71.90% |
| 2004 | 17.30% |
| 2005 | 0.90% |
| Standard deviation | 42% |
| (=STDEV.S(returns)) |
Hence the volatility of Home depot's return is 42%.
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Consider the following returns: Year-End 2000 2001 2002 2003 2004 2005 Lowes Realized Return 20.4% 72.7%...
Consider the following returns: Lowes Home Depot Realized Realized Year-End Return Return 2000 20.7% - 14.6%...
Consider the following returns: Lowes Home Depot Realized Realized Year-End Return Return 2000 20.7% - 14.6% 2001 72.7% 4.7% 2002 - 25.7% - 58.1% 2003 56.4% 71.2% 2004 6.7% 17.3% 2005 17.9% 0.9% IBM Realized Return 0.2% -3.2% - 27.0% 27.9% -5.1% - 11.3% The covariance between Lowes' and Home Depot's returns is closest to: O A. 0.1 OB. 0.12 OC. 0.31 OD. 0.72
Consider the returns above: The volatility on Home Depot's returns is closest to: A. 17% B....
Consider the returns above:
The volatility on Home Depot's returns is closest to:
A.
17%
B.
32%
C.
42%
D.
35%
Year-End 2000 2001 2002 2003 Lowes Realized Return 20.3% 72.7% - 25.7% 56.5% 6.7% 17.9% Home Depot Realized Return - 14.6% 4.3% - 58.1% 71.9% 17.3% 0.9% IBM Realized Return 0.2% -3.2% - 27.0% 27.9% -5.1% - 11.3% 2004 2005
Stock XStock Y Realized Realized Year End 2004 2005 2006 2007 2008 Return 20.1% 727% -2.57%...
Stock XStock Y Realized Realized Year End 2004 2005 2006 2007 2008 Return 20.1% 727% -2.57% 565% 67% Stock Z Realized Return 02% -32% -27.0% 27.9% Return -14.6% 43% -58.1% 2009 17.9% 09% -11.3% Q5. The covariance between Stock X's and Stock Y's returns is closest to: A) 0.10 B) 0.29 C) 0.12 D) 0.69 Q6. The Volatility on Stock X's returns is closest to: A)35% B) 10% C) 13% D) 42%
Use this information for Q14 and Q15 Consider the following realized annual returns: Year-end 1996 1997...
Use this information for Q14 and Q15 Consider the following realized annual returns: Year-end 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 S&P 500 Realized Return 23.6% 24.7% 30.5% 9.0% -2.0% -17.3% -24.3% 32.2% 4.4% 7.4% IBM Realized Return 46.3% 26.7% 86.9% 23.1% 0.2% -3.2% -27.0% 27.9% -5.1% -11.3% 14) The average annual return on the S&P 500 from 1996 to 2005 is closest to: A) 8.75% B) 4.00% C) 7.10% D) 9.75% E) 5.85%
Year End 2004 2005 2006 2007 2008 Stock XStock Y Realized Realized Return -14.6% 42% -58.1%...
Year End 2004 2005 2006 2007 2008 Stock XStock Y Realized Realized Return -14.6% 42% -58.1% Return 20.1% 727% 257% 569% 67% Stock Z Realized Return 0.2% -32% 27.9% 2009 05% -11.3%
Consider the following realized annual returns: Year Stock A Index 2000 23.6% 50.3% 2001 24.7% 30.7%...
Consider the following realized annual returns: Year Stock A Index 2000 23.6% 50.3% 2001 24.7% 30.7% 2002 30.5% 86.9% 2003 9.0% 23.1% 2004 -2.0% 0.2% 2005 -17.3% -3.2% 2006 -24.3% -27.0% 2007 32.2% 27.9% 2008 4.4% -5.1% 2009 7.4% -11.3% a. Calculate the average of annual returns of the index. b. Compute the standard deviation of annual returns of the index. c. Compute the lower bound of the 95% confidence interval for annual returns of the index. Use the exact...
Consider the following realized annual returns: Year Stock A Index 2000 23.6% 48.3% 2001 24.7% 28.7%...
Consider the following realized annual returns: Year Stock A Index 2000 23.6% 48.3% 2001 24.7% 28.7% 2002 30.5% 86.9% 2003 9.0% 23.1% 2004 -2.0% 0.2% 2005 -17.3% -3.2% 2006 -24.3% -27.0% 2007 32.2% 27.9% 2008 4.4% -5.1% 2009 7.4% -11.3% a. Calculate the average of annual returns of the index. b. Compute the standard deviation of annual returns of the index. c. Compute the lower bound of the 95% confidence interval for annual returns of the index. Use the exact...
Consider the following realized annual returns: Year End Index Realized Return Stock A Realized R...
Consider the following realized annual returns: Year End Index Realized Return Stock A Realized Return 2006 23.6% 46.3% 2007 24.7% 26.7% 2008 30.5% 86.9% 2009 9.0% 23.1% 2010 -2.0% 0.2% 2011 -17.3% -3.2% 2012 -24.3% -27.0% 2013 32.2% 27.9% 2014 4.4% -5.1% 2015 7.4% -11.3% The average annual return on the Index from 2006 to 2015 is closest to: 8.75% 7.10% 9.75% 4.00%
Question7Task 19 v2 Consider the following realized annual returns: Year Stock A Index 2000 23.6% 47.3%...
Question7Task 19 v2 Consider the following realized annual returns: Year Stock A Index 2000 23.6% 47.3% 2001 24.7% 27.7% 2002 30.5% 86.9% 2003 9.0% 23.1% 2004 -2.0% 0.2% 2005 -17.3% -3.2% 2006 -24.3% -27.0% 2007 32.2% 27.9% 2008 4.4% -5.1% 2009 7.4% -11.3% a. Calculate the average of annual returns of the index. b. Compute the standard deviation of annual returns of the index. c. Compute the lower bound of the 95% confidence interval for annual returns of the index....
Consider the following returns: Lowes Home Depot Realized Realized Year-End Return Return 2000 20.7% - 14.6% 2001 72.7% 4.7% 2002 - 25.7% - 58.1% 2003 56.4% 71.2% 2004 6.7% 17.3% 2005 17.9% 0.9% IBM Realized Return 0.2% -3.2% - 27.0% 27.9% -5.1% - 11.3% The covariance between Lowes' and Home Depot's returns is closest to: O A. 0.1 OB. 0.12 OC. 0.31 OD. 0.72
Consider the returns above:
The volatility on Home Depot's returns is closest to:
A.
17%
B.
32%
C.
42%
D.
35%
Year-End 2000 2001 2002 2003 Lowes Realized Return 20.3% 72.7% - 25.7% 56.5% 6.7% 17.9% Home Depot Realized Return - 14.6% 4.3% - 58.1% 71.9% 17.3% 0.9% IBM Realized Return 0.2% -3.2% - 27.0% 27.9% -5.1% - 11.3% 2004 2005
Stock XStock Y Realized Realized Year End 2004 2005 2006 2007 2008 Return 20.1% 727% -2.57% 565% 67% Stock Z Realized Return 02% -32% -27.0% 27.9% Return -14.6% 43% -58.1% 2009 17.9% 09% -11.3% Q5. The covariance between Stock X's and Stock Y's returns is closest to: A) 0.10 B) 0.29 C) 0.12 D) 0.69 Q6. The Volatility on Stock X's returns is closest to: A)35% B) 10% C) 13% D) 42%
Use this information for Q14 and Q15 Consider the following realized annual returns: Year-end 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 S&P 500 Realized Return 23.6% 24.7% 30.5% 9.0% -2.0% -17.3% -24.3% 32.2% 4.4% 7.4% IBM Realized Return 46.3% 26.7% 86.9% 23.1% 0.2% -3.2% -27.0% 27.9% -5.1% -11.3% 14) The average annual return on the S&P 500 from 1996 to 2005 is closest to: A) 8.75% B) 4.00% C) 7.10% D) 9.75% E) 5.85%
Year End 2004 2005 2006 2007 2008 Stock XStock Y Realized Realized Return -14.6% 42% -58.1% Return 20.1% 727% 257% 569% 67% Stock Z Realized Return 0.2% -32% 27.9% 2009 05% -11.3%
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