Question

In: Finance

You are given the following set of data: Year NYSE Stock X 1 -26.5% -14% 2...

You are given the following set of data:

Year NYSE Stock X

1

 -26.5% -14%
2 37.2 23.0
3 23.8 17.5
4 -7.2 2.0
5 6.6 8.1
6 20.5 19.4
7 30.6 18.2

a. Determine Stock X beta coefficient

b. determine the arithmetic average rates of return for stock X and NYSE over the period given. Calculate the standard deviations of returns for both X and NYSE

c. assume the situation during years 1 to 7 is expected to prevail in the future. Also assume stock X is in equilibrium that is, its plots on the SML. What is the risk-free rate?

Solutions

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.

jeff jeffy answered 1 month ago
Next > < Previous

Related Solutions

You are given the following set of data: HISTORICAL RATES OF RETURN Year      NYSE         Stock X...
You are given the following set of data: HISTORICAL RATES OF RETURN Year      NYSE         Stock X 1 - 26.5% - 19.0% 2 37.2    16.0    3 23.8    15.5    4 - 7.2    3.0    5 6.6    9.1    6 20.5    19.4    7 30.6    19.5    The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Use a spreadsheet (or a calculator with a linear regression function) to determine...
You are given the following set of data: HISTORICAL RATES OF RETURN Year      NYSE         Stock X...
You are given the following set of data: HISTORICAL RATES OF RETURN Year      NYSE         Stock X 1 - 26.5% - 10.0% 2 37.2    21.0    3 23.8    18.5    4 - 7.2    2.0    5 6.6    8.9    6 20.5    19.9    7 30.6    18.8    Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X's beta coefficient. Round your answer to two decimal places. Beta = Determine the arithmetic average rates of return for Stock X and the NYSE over...
Year      NYSE         Stock X 1 - 26.5% - 21.0% 2 37.2    17.0    3 23.8    20.0    4...
Year      NYSE         Stock X 1 - 26.5% - 21.0% 2 37.2    17.0    3 23.8    20.0    4 - 7.2    4.0    5 6.6    9.2    6 20.5    19.7    7 30.6    17.0 A. Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X's beta coefficient. Round your answer to two decimal places. b. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for both Stock...
Characteristic Line You are given the following set of data: Historical Rates of Return Year NYSE...
Characteristic Line You are given the following set of data: Historical Rates of Return Year NYSE Stock Y 1 4.0 % 3.5 % 2 14.3 17.7 3 19.0 9.2 4 - 14.7 - 9.0 5 - 26.5 - 12.2 6 37.2 32.1 7 23.8 6.7 8 - 7.2 3.5 9 6.6 13.9 10 20.5 22.7 11 30.6 17.0 Mean = 9.8 % 9.6 % σ = 19.6 % 13.1 % Use a spreadsheet or a calculator with a linear regression...
You are given the following data                        Year            HPR of Stock A &nb
You are given the following data                        Year            HPR of Stock A      HPR of Stock B      HPR of Stock C                          2017                12%                            16%                         12%                         2018                 14%                            14%                         14%                         2019                 16%                            12%                         16% (1) Calculate expected rate of return for each stock (2) Calculate standard deviation for each stock (3) Calculate coefficient of variation for each stock. If you will choose only one stock for investment, which stock will you choose? Why? (4) How much is correlation coefficient...
(a) Suppose you are given the following (x, y) data pairs. x 1 2 5 y...
(a) Suppose you are given the following (x, y) data pairs. x 1 2 5 y 4 3 6 Find the least-squares equation for these data (rounded to three digits after the decimal). ŷ = + x (b) Now suppose you are given these (x, y) data pairs. x 4 3 6 y 1 2 5 Find the least-squares equation for these data (rounded to three digits after the decimal). ŷ = + x (c) In the data for parts...
Given the data set A = {5, 4, 6, 14, 2, 2, 11, 4, 5, 8,...
Given the data set A = {5, 4, 6, 14, 2, 2, 11, 4, 5, 8, 3, 1, 12, 15, 13}, which is the data of a sample taken from a larger population. Calculate the arithmetic mean Find the median Find the mode Calculate the range Calculate the interquartile range Calculate the mean deviation Calculate the variance Calculate the standard deviation
Compute the related samples t on the following data set. Condition 1 Condition 2 15 14...
Compute the related samples t on the following data set. Condition 1 Condition 2 15 14 11 9 13 7 7 12 What can we conclude about our findings?
Suppose you are given the following end of year stock price data for Random Inc. stock....
Suppose you are given the following end of year stock price data for Random Inc. stock. Assume the returns are normally distributed, calculate the probability that an investor will lose more than -3% in a year, Prob(Ret<-3%). (Enter percentages as decimals and round to 4 decimals). Year Price 2005 43.65 2006 44.01 2007 45.77 2008 53.04 2009 45.67 2010 59.05 2011 46.88 2012 49.24 2013 43.99 2014 42.67 2015 48.14
Suppose you are given the following end of year stock price data for Random Inc. stock....
Suppose you are given the following end of year stock price data for Random Inc. stock. Assume the returns are normally distributed, calculate the probability that an investor will lose more than -3% in a year, Prob(Ret<-3%). (Enter percentages as decimals and round to 4 decimals). Year Price 2005 43.65 2006 44.01 2007 45.77 2008 53.04 2009 45.67 2010 59.05 2011 46.88 2012 49.24 2013 43.99 2014 42.67 2015 48.14
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT