Below are the annual returns of the stock A, B, C and D and the market...

Below are the annual returns of the stock A, B, C and D and the market portfolio for the period 2018-2022. Find the expected return and standard deviation of the stock A, B, C, D and the market portfolio. PREPARED BY HANDWRITING.

Year	Prob.	Asset A	Asset B	Asset C	Asset D	Market
2018	0,20	11,00	9,00	12,00	15,00	14,00
2019	0,25	13,00	11,00	15,00	13,00	12,00
2020	0,10	9,00	8,00	11,00	10,00	9,00
2021	0,20	12,00	12,00	11,00	13,00	12,00
2022	0,25	15,00	10,00	9,00	12,00	13,00

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

QUE// DISCUSS THE FOLLOWING FINANCIAL MARKET TERMS a) . Liquidity b) Capital Market c) Stock d)...

QUE// DISCUSS THE FOLLOWING FINANCIAL MARKET TERMS a) . Liquidity b) Capital Market c) Stock d) Bond Market e) Market Capitalization f) Money Market e) Treasury Bills f) Commercial paper and Bank Transaction Account

Stock Beta Expected returns A 1.1 10.50% B 0.8 7.80% C 0.7 7.10% D 1.3 12.20%...

Stock Beta Expected returns A 1.1 10.50% B 0.8 7.80% C 0.7 7.10% D 1.3 12.20% E 1.5 14.48% Assume that there are two securities which are not correctly priced. Which are they? Are they over-priced or under-priced? b. Given the following information for Company D, find the WACC. Assume the company’s tax rate is 25 percent. Debt: 5,600 (23) percent coupon bonds outstanding, $1,000 par value, 2 years to maturity, selling for 120 percent of par; the bonds make...

The following table shows the past annual returns for Stock A and Stock B, please find...

The following table shows the past annual returns for Stock A and Stock B, please find the expected return, standard deviation and coefficient of variation for Stock A, Stock B and a Portfolio that puts 40% weight on Stock A and 60% weight on Stock B. Year Stock A Returns Stock B Returns 2005 10.30% 10.71% 2006 -0.10% 25.00% 2007 23.30% 0.38% 2008 2.20% 26.20% 2009 14.00% 11.52%

Consider the cross: A/a; b/b; C/c; D/d; E/e x A/a; B/b; c/c; D/d; e/e a) what...

Consider the cross: A/a; b/b; C/c; D/d; E/e x A/a; B/b; c/c; D/d; e/e a) what proportion of the progeny will phenotypically resemble the first parent? b) what proportion of the progeny will genotypically resemble neither parent?

Consider the following realized annual returns: Year End Market Realized Return Stock B Realized Return 2000...

Consider the following realized annual returns: Year End Market Realized Return Stock B Realized Return 2000 21.2% 88.3% 2001 30.3% 56.4% 2002 22.3% 114.6% 2003 25.3% 68.4% 2004 -11.0% -62.8% 2005 -11.3% 52.7% 2006 -20.8% -22.0% 2007 33.1% 6.9% 2008 13.0% 9.2% 2009 7.3% -0.9% Consider the following realized annual returns: Q1 : Suppose that you want to use the 10 year historical average return on the Market to forecast the expected future return on the Market. Calculate the 95%...

What are the arithmetic and geometric average returns for a Property D with annual returns of...

What are the arithmetic and geometric average returns for a Property D with annual returns of 11 percent, 14 percent, -2 percent and 6 percent? A. 7.25%; 7.08% B. 8.25%; 7.89% C. 8.25%; 8.15% D. 7.25%; 7.37% E. 7.25%; 8.15%

The expected returns for Stocks A, B, C, D, and E are 7%, 10%, 12%, 25%,...

The expected returns for Stocks A, B, C, D, and E are 7%, 10%, 12%, 25%, and 18% respectively. The corresponding standard deviations for these stocks are 12%, 18%, 15%, 23%, and 15% respectively. Based on their coefficients of variation, which of the securities is least risky for an investor? Assume all investors are risk-averse and the investments will be held in isolation. a. E b. B c. D d. C e. A

Consider the following probability distribution of returns estimated for Projects B, C and D. Construct an...

Consider the following probability distribution of returns estimated for Projects B, C and D. Construct an equal-weighted (50/50) portfolio of Investments B and D. State Probability B C D Very poor 0.1 25% -25% 15% Poor 0.2 15% -5% 10% Average 0.4 10% 15% 0% Good 0.2 0% 35% 25% Very good 0.1 -10% 55% 35% The expected rate of return of the portfolio is 10.25. What is the standard deviation?

which one is not market securities a) capital market b) primary market c) money market d)...

which one is not market securities a) capital market b) primary market c) money market d) secondary market e) dow jones

(Efficient Market Hypothesis) A stock purchased at $Pt provides an annual dividend of $D... There is...

(Efficient Market Hypothesis) A stock purchased at $Pt provides an annual dividend of $D... There is new information about the stock and the market believes that its rate of return will be above the equilibrium rate of return from similar stocks. a. Show using Demand and Supply analysis the impact of this information on the current price of the stock. b. Explain the impact on the rate of return of the stock using the new current price. c. Compare the...

Subjects