Over the past four years, a stock produced returns of 13, 6, -5,
and 18 percent, respectively.
What is the standard deviation of these returns? What would be the
standard deviation of these returns if they were exactly twice the
return shown for each year? please show your work.
A stock had returns of 18.58%, 1.34%, and 20.81% for the past
three years. What is the variance of returns? Answer with a decimal
to the 4th place.
Please show work on paper, dont use excel
Company A and B are both service companies. For the past three
years their stock returns were:
A: -5%, 15%, 20%
B: 8%, 8%, 20%
If A and B are combined into a portfolio with 50% of the funds
invested in each stock, calculate the expected return on the
portfolio.
A stock had returns of 18.58%, -5.58%, and 20.81% for the past
three years. What is the variance of returns? Enter as a decimal,
rounding to 4th decimal place. (E.g., 0.0357)
The actual returns of company A for the past three months were
15%, 25%, -5% and that of company B were 18%, 24% and -1%.. In case
of portfolio, there will be equal investment a) Calculate the
expected standard deviation of company B b) Find the correlation
coefficient between the rates of return c) Find the expected
portfolio return if you invest equally in the two companies d) Find
the weighted standard deviation of the portfolio e) Find the
standard...
A stock had returns of 6 percent, 39 percent, and -3 percent
over the past 3 years. What is the mean of the stock’s returns over
the past 3 years minus the sample standard deviation of the stock’s
returns from the past 3 years? Answer as a rate in decimal format
so that 12.34% would be entered as .1234 and 0.98% would be entered
as .0098.
Question 6
What is the variance
of the returns on a portfolio that is invested 40 percent in Stock
S and 60 percent in Stock T?
State of
Economy
Probability of
State of Economy
Rate of Return
if State Occurs
Stock S
Stock T
Boom
.06
.22
.18
Normal
.92
.15
.14
Bust
.02
−.26
.09
Over the past four years, a stock produced returns of 14
percent, 22 percent, 6 percent, and -19 percent. What is the
approximate probability that an investor in this stock will not
lose more than 30 percent nor earn more than 41 percent in any one
given year? How would you calculate this in excel?
You have invested $3M in stock A with the expected annual
returns of 10% and the variance of return .0011.
a. What is 3%, one year VaR of your investment?
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b. What is 3%, three months VaR of your investment?
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c. What is the probability that the annual return to your
investment would fall below 4.5%?
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