Question
In: Finance
The following table shows the annual returns over a six year period for the S&P 500...
The following table shows the annual returns over a six year period for the S&P 500 market index and MCH, Inc. Assume that the historical information represents a population. Use this data to calculate the correlation between both sets of security returns. Discuss your findings.
|
Year |
S&P 500 |
MCH, Inc. |
|
2013 |
0.15 |
0.37 |
|
2014 |
0.13 |
0.09 |
|
2015 |
0.14 |
-0.11 |
|
2016 |
-0.09 |
0.08 |
|
2017 |
0.12 |
0.11 |
|
2018 |
0.09 |
0.04 |
Please show me each step. Thank you
Solutions
Expert Solution
ANSWER IN THE IMAGE((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.
In
the Image:
A= S&P500
B= MCH inc.
There is a weak positive correlation (0.1305) between Market and
MCH Inc.
It means that there is a 13.05% chance that, if the S&P500 goes
up, then MCH also goes up and Vice-versa.
jeff jeffy answered 2 years agoRelated Solutions
The following table shows the annual returns over a six year period for the S&P 500...
The following table shows the annual
returns over a six year period for the S&P 500 market index and
MCH, Inc. Assume that the historical information represents a
population. Use this data to calculate the correlation between both
sets of security returns. Discuss your findings.
Year
S&P
500
MCH,
Inc.
2013
0.15
0.37
2014
0.13
0.09
2015
0.14
-0.11
2016
-0.09
0.08
2017
0.12
0.11
2018
0.09
0.04
Table 3 (below) shows annual returns for the S&P 500 for the years 2000-2016: Table 3:...
Table 3 (below) shows annual returns for the S&P 500 for
the years 2000-2016:
Table 3: Annual Returns
Year
Returns
2000
-9.0%
2001
-11.9%
2002
-22.0%
2003
28.4%
2004
10.7%
2005
4.8%
2006
15.6%
2007
5.5%
2008
-36.6%
2009
25.9%
2010
14.8%
2011
2.1%
2012
15.9%
2013
32.2%
2014
13.5%
2015
1.4%
2016
11.7%
Calculate:
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The S&P 500 and Nohr Corp had the following returns over the past five years Year ...
The S&P 500 and Nohr Corp had the following returns over the
past five years
Year S&P
500
Nohr
.12
.23
.01
-.05
.18
.20
.09
.12
.10
.20
a. What was the mean AND standard
deviation of returns (population version)
for Nohr for the 5 years?
b. What was the beta of Nohr relative to the S&P 500?
c. What was the geometric mean return for Nohr
for the 5 years?
Use the following table to complete questions 1-3. S&P 500 returns and the risk-free rate of...
Use the following table to complete questions 1-3. S&P 500
returns and the risk-free rate of return can take on the following
possible values with the given probabilities.
State Pi S&P 500 Returns Risk-Free Rate
Recession 0.25 -10% 8%
Low Pullback 0.25 -5% 8%
No Growth 0.25 0% 8%
Low Growth 0.25 5% 8%
1. What is the expected value of S&P 500 returns? What is the
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Consider the following table for a period of six years: Returns Year Large-Company Stocks U.S. Treasury...
Consider the following table for a period of six
years:
Returns
Year
Large-Company Stocks
U.S. Treasury Bills
1
–14.99
%
7.35
%
2
–26.56
8.02
3
37.29
5.93
4
23.99
5.37
5
–7.28
5.48
6
6.63
7.73
Calculate the arithmetic average returns for large-company stocks
and T-bills over this time period. (Do not round
intermediate calculations and enter your answers as a percent
rounded to 2 decimal places, e.g., 32.16.)
Arithmetic
average returns
Large-company
stock
%
T-bills
%
Calculate...
Consider the following table for a period of six years. Returns Year Large-Company Stocks U.S. Treasury...
Consider the following table for a period of six years.
Returns
Year
Large-Company Stocks
U.S.
Treasury Bills
Year 1
–
15.39
%
7.43
%
Year 2
–
26.68
8.06
Year 3
37.37
6.01
Year 4
24.07
5.77
Year 5
–
7.44
5.52
Year 6
6.71
7.85
Requirement 1:
Calculate the arithmetic average returns for large-company
stocks and T-bills over this time period.
(Do not round intermediate calculations.
Enter your answers as a percentage rounded to 2
decimal places (e.g., 32.16).)...
Consider the following table for a period of six years: Returns Year Large-Company Stocks U.S. Treasury...
Consider the following table for a period of six years: Returns
Year Large-Company Stocks U.S. Treasury Bills 1 –15.69 % 7.49 % 2
–26.77 8.09 3 37.43 6.07 4 24.13 6.07 5 –7.56 5.55 6 6.77 7.94
Calculate the arithmetic average returns for large-company stocks
and T-bills over this time period. Arithmetic average returns
Large-company stock % T-bills % Calculate the standard deviation of
the returns for large-company stocks and T-bills over this time
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Part 1: The following table shows historical stock prices of Spider S&P 500 ETF and Amazon...
Part 1:
The following table shows historical stock prices of Spider
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adjusted closing prices on the first day of each month from
9/1/2016 to 8/1/2018. The monthly risk-free rates for the T-bills
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monthly returns for the Spider S&P 500 ETF and the Amazon
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The following table shows the annual returns (in percent) and summary measures for a sample of...
The following table shows the annual returns (in percent) and
summary measures for a sample of returns from the Vanguard Energy
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Year
Energy (%)
Health Care (%)
2012
44.6
15.41
2013
19.68
10.87
2014
37
10.43
2015
-42.87
-18.45
2016
28.36
20.96
If the risk-free rate is 3%, using mean-variance analysis, which
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a.
The Energy Fund performed better, because its Sharpe Ratio was
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You are considering the relationship between annual returns on the S&P 500 index (January 31 to...
You are considering the relationship between annual returns on
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in the unemployment rate. You define:
S = annual % change in the S&P500 (SPX)
U = annual % change in the unemployment rate
You consider the following univariate relationship:
Si = b0 + b1Ui +
εi
You have data on annual changes in the unemployment rate and the
S&P500 (SPX) from 2002 through 2020 (19 observations) and you...
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