return as it is related to risk. What is return, component parts
of return, historical returns,...
return as it is related to risk. What is return, component parts
of return, historical returns, and the relationship of returns, and
considerations in evaluating return?
What are the two components of total risk? Which component is
part of the risk-return relationship? Why?
(Please thoroughly explain the the 2 components firm-specific
risk and market risk. )
Based on the historical returns shown below, what is the stock’s
expected return for 2017?
Year
Return
2014
17%
2015
-12%
2016
25%
Question 1 options:
A)
9.4%
B)
9.6%
C)
9.8%
D)
10.0%
E)
10.2%
Historical Realized Rates of Return
Stocks A and B have the following historical returns:
Year
2012
-19.60%
-14.00%
2013
20.00
30.00
2014
12.00
35.30
2015
-1.00
-10.20
2016
31.50
1.80
Calculate the average rate of return for each stock during the
5-year period. Round your answers to two decimal places.
Stock A
%
Stock B
%
Assume that someone held a portfolio consisting of 50% of Stock
A and 50% of Stock B. What would have been the realized rate...
Suppose the returns on an asset are normally distributed. The
historical average annual return for the asset was 7.3 percent and
the standard deviation was 8.4 percent. What is the probability
that your return on this asset will be less than –4.5 percent in a
given year? Use the NORMDIST function in Excel® to answer this
question. (Do not round intermediate calculations. Enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Probability 8.0 % What range...
Suppose the returns on an asset are normally distributed. The
historical average annual return for the asset was 6.7 percent and
the standard deviation was 12.6 percent.
What range of returns would you expect to see 95 percent of the
time? (Enter your answers for the range from lowest to
highest. A negative answer should be indicated by a minus
sign. Do not round intermediate calculations.
Enter your answers as a percent rounded to 2 decimal places, e.g.,
32.16.)...
Suppose the returns on an asset are normally distributed. The
historical average annual return for the asset was 5.9 percent and
the standard deviation was 10.5 percent. a. What is the probability
that your return on this asset will be less than –7.3 percent in a
given year? Use the NORMDIST function in Excel® to answer this
question. (Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.) b.
What range...
The historical returns on a balanced portfolio have had an
average return of 12% and a standard deviation of 20%. Assume that
returns on this portfolio follow a normal distribution. [Use Excel
commands instead of the z table.]
a. What percentage of returns were greater than 52%? (Round your
answer to 2 decimal places.)
b. What percentage of returns were below −48%? (Round your
answer to 2 decimal places.)
Problem 6-13
Historical Realized Rates of Return
Stocks A and B have the following historical returns:
Year
2012
-22.60%
-15.90%
2013
32.50
18.60
2014
17.75
28.30
2015
-2.50
-13.50
2016
31.75
39.40
Calculate the average rate of return for each stock during the
5-year period. Round your answers to two decimal places.
Stock A
%
Stock B
%
Assume that someone held a portfolio consisting of 50% of Stock
A and 50% of Stock B. What would have been the...
Problem 6-13
Historical Realized Rates of Return
Stocks A and B have the following historical returns:
Year
2012
-23.50%
-14.60%
2013
29.75
21.40
2014
10.50
25.40
2015
-1.75
-7.50
2016
32.50
22.80
Calculate the average rate of return for each stock during the
5-year period. Round your answers to two decimal places.
Stock A
%
Stock B
%
Assume that someone held a portfolio consisting of 50% of Stock
A and 50% of Stock B. What would have been the...
Problem 6-13
Historical Realized Rates of Return
Stocks A and B have the following historical returns:
Year
2012
-18.30%
-15.70%
2013
34.50
24.80
2014
15.00
26.00
2015
-4.25
-12.10
2016
32.25
36.20
Calculate the average rate of return for each stock during the
5-year period. Round your answers to two decimal places.
Stock A
%
Stock B
%
Assume that someone held a portfolio consisting of 50% of Stock
A and 50% of Stock B. What would have been the...