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Returns earned over a given time period are called realized returns. Historical data on realized returns...
Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Happy Dog Soap Inc. (HDS): Five years of realized returns for HDS are given in the following table. Remember: 1. While HDS was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on its equity are calculated as arithmetic returns.
3. The historical returns for HDS for 2014 to 2018 are: 2014 2015 2016 2017 2018 Stock return 22.50% 15.30% 27.00% 37.80% 11.70% Given the preceding data, the average realized return on HDS’s stock is . The preceding data series represents of HDS’s historical returns. Based on this conclusion, the standard deviation of HDS’s historical returns is . If investors expect the average realized return from 2014 to 2018 on HDS’s stock to continue into the future, its coefficient of variation (CV) will be
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jeff jeffy answered 3 months agoRelated Solutions
Returns earned over a given time period are called realized returns. Historical data on realized returns...
Returns earned over a given time period are called realized
returns. Historical data on realized returns is often used to
estimate future results. Analysts across companies use realized
stock returns to estimate the risk of a stock.
Consider the case of Celestial Crane Cosmetics Inc. (CCC):
Five years of realized returns for CCC are given in the
following table. Remember:
1.
While CCC was started 40 years ago, its common stock has been
publicly traded for the past 25 years....
Returns earned over a given time period are called realized returns. Historical data on realized returns...
Returns earned over a given time period are called realized
returns. Historical data on realized returns is often used to
estimate future results. Analysts across companies use realized
stock returns to estimate the risk of a stock.
Consider the case of Falcon Freight Inc. (FF):
Five years of realized returns for FF are given in the following
table. Remember:
1.
While FF was started 40 years ago, its common stock has been
publicly traded for the past 25 years.
2....
Measuring standalone risk using realized data Returns earned over a given time period are called realized...
Measuring standalone risk using realized
data
Returns earned over a given time period are called realized
returns. Historical data on realized returns is often used to
estimate future results. Analysts across companies use realized
stock returns to estimate the risk of a stock.
Five years of realized returns for Blue Llama Mining Inc. (Blue
Llama) are given in the following table:
2012
2013
2014
2015
2016
Stock return
11.25%
7.65%
13.50%
18.90%
5.85%
Also note that:
1.
While Blue Llama...
7. Measuring standalone risk using realized (historical) data Returns earned over a given time period are...
7. Measuring standalone risk using realized (historical)
data
Returns earned over a given time period are called realized
returns. Historical data on realized returns is often used to
estimate future results. Analysts across companies use realized
stock returns to estimate the risk of a stock.
Consider the case of Happy Dog Soap Inc. (HDS):
Five years of realized returns for HDS are given in the
following table. Remember:
1.
While HDS was started 40 years ago, its common stock has...
3. Measuring stand-alone risk using realized (historical) data Returns earned over a given time period are...
3. Measuring stand-alone risk using realized
(historical) data
Returns earned over a given time period are called realized
returns. Historical data on realized returns is often used to
estimate future results. Analysts across companies use realized
stock returns to estimate the risk of a stock.
Consider the case of Celestial Crane Cosmetics Inc. (CCC):
Five years of realized returns for CCC are given in the
following table. Remember:
1.
While CCC was started 40 years ago, its common stock has...
1. _____ are major accomplishments to be realized over a long period of time. A. Objectives...
1. _____ are major accomplishments to be realized over a long
period of time.
A. Objectives
B. Goals
C. Tactical Plans
D. None of the above
2. ______ coordinate activities.
A. First line managers
B. Middle managers
C. Senior managers
D. Top managers
3. ___________ spreads decision making throughout the
organization.
A. Centralization
B. Decentralization
C. The Matrix Organization
D. all of the above
4. A mission statement describes the _____ of a business.
A. purpose
B. social goals
C....
Historical Realized Rates of Return Stocks A and B have the following historical returns: Year 2012...
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...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time:...
Historical Returns: Expected and Required Rates of Return
You have observed the following returns over time:
Year
Stock X
Stock Y
Market
2011
13%
13%
13%
2012
17
7
12
2013
-13
-5
-13
2014
4
2
2
2015
19
13
12
Assume that the risk-free rate is 4% and the market risk premium
is 6%. Do not round intermediate calculations.
What is the beta of Stock X? Round your answer to two decimal
places.
What is the beta of...
Problem 6-13 Historical Realized Rates of Return Stocks A and B have the following historical returns:...
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:...
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...
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