If John's stock return was -1% and the TSX stock index had a 3% return, the excess return of John's stock above the market is
Select one:
a. -2 percent.
b. 4 percent.
c. -4 percent.
d. 2 percent.
Answer: c. -4 Percent
Explanation:
Because the stocks return is showing as negative the excess return of John's stock above the market is -4%.
If John's stock return was -1% and the TSX stock index had a 3% return, the...
4. Compare your annualized return with that of the S&P/TSX Composite index over the past year. In one paragraph, explain why each return is greater or less than the index.
3. A stock index consists of the market value of a collection of stocks. The rate of return on stock of 1900-1999, the Standard & ollows an approximately normal distribution. In th oor's 500 index, abbreviated S & P 500, bes produced ar average annual return of approximately with a standard deviation of about 18% (a) In what range do the middle 50% of allstocks yearly returns lie? (As with other problems, it may help to araw a picture.) Answer:...
1. using daily historical returns for the S&P 500 and the Toronto Stock Exchange Composite (TSX) you notice that the majority of the times when the S&P 500 has positive returns so does the TSX composite. Based on this qualitative assessment, one could expect that: a) the covariance between the return in the S&P 500 and TSX is greater than 0 b)the covariance between the return in the S&P 500 and TSX is equal to 0 c) the correlation between...
Plz answer question A
1.3 Month Return of Stock A Return of Market Index 2.3 2.5 5.0 3 1.9 0.8 4 2.4 1.9 2.1 1.1 a. Find Covariance of return of stock A and return of Market Index (0.5% of your total grade) b. Find Correlation Coefficients of stock A and return of Market Index (0.5% of your total grade)
You are given the following for last year: The stock market index had a return of 10% with a standard deviation of return of 14%. An actively-managed portfolio (X) had a return of 16% with a standard deviation of 28%. The risk-free interest rate last year was 2%. What was the M-squared measure for portfolio X? O O O O O
Consider the two (excess return) index model regression results for A and B. RA = 1.2% + 1.5M R-square = 0.612 Residual standard deviation = 11.5% RB = -1.8% + 0.9RM R-square = 0.476 Residual standard deviation = 9.5% a. Which stock has more firm-specific risk? Stock A Stock B b. Which stock has greater market risk? Stock A Stock B c. For which stock does market movement has a greater fraction of return variability? Stock A Stock B d....
Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 4%, and the marker's average return was 11%. Performance is measured using an index model regression on excess returns Index model regression estimates R-square Residual standard deviation, (e) Standard deviation of excess returns Stock A 1% + 1.2M - rf) 2.683 12.15 23.4% Stock 8 2% + 0.8( - rf) 2.49 20.93 28.5% a. Calculate the following statistics for each...
Consider the two (excess return) index-model regression results
for stocks A and B. The risk-free rate over the
period was 7%, and the market’s average return was 14%. Performance
is measured using an index model regression on excess returns.
Consider the two excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 7%, and the market's average return was 14%. Performance is measured using an index model regression on excess returns Stock A...
#05 A Saved Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 5%, a market's average return was 14%. Performance is measured using an index model regression on excess returns. Index model regression estimates R-square Residual standard deviation, ole) Standard deviation of excess returns Stock A 1% + 1.2 (rm -rf) 0.611 10.9% 22.2% Stock B 2% + 0.8(rm -rf) 0.454 19.7% 26.1% a. Calculate the following statistics for...
please show work
Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 5%, and the market's average return was 12%. Performance is measured using an index model regression on excess returns. Index model regression estimates R-square Residual standard deviation, o(e) Standard deviation of excess returns Stock A 1% + 1.2 (rm -rf 0.599 10.7% 22% Stock B 2% + 0.8(rm -rf) 0.448 19.5% 25.7% a. Calculate the following statistics...