Question

In: Finance

Use the following 5-year sample on annual returns on S&P500 index and XYZ to calculate XYZ's...

Use the following 5-year sample on annual returns on S&P500 index and XYZ to calculate XYZ's Coecient of Variation, Sharpe ratio, and Beta. The yield-to-maturity on one-year T-Bills is 2%.

Year S&P500 XYZ
2014 0.01 0.02
2015 0.06 0.11
2016 0.02 0.05
2017 0.005 -0.01
2018 0.01 0.02

Solutions

Expert Solution

ANSWER IN THE IMAGE. FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

in the image:

A= S&P 500

B= XYZ.

Ans: CV= 1.20, SR= 0.40, Beta= 1.96


Related Solutions

Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222 is equivalent to -2.22%). A S_P500 -0.0222 0.0032 -0.0048 -0.0058 0.1333 0.0434 0.0765 0.1081 -0.0161 -0.0121 0.1250 0.1400 0.0145 0.0368 -0.0475 -0.0454 0.0430 0.0577 -0.0260 -0.1374 0.0071 0.0064 0.0249 0.0186 0.0850 0.0215 -0.0624 -0.0752 0.0933 0.0365 0.0456 0.0528 -0.0632 -0.0131 0.0450 0.0009 0.0200 0.0017 0.0280 0.0985 Suppose that the next S&P500 return will be 7%. Use the CAPM model to calculate the expected return...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222 is equivalent to -2.22%). A S_P500 -0.0222 0.0032 -0.0048 -0.0058 0.1333 0.0434 0.0765 0.1081 -0.0161 -0.0121 0.1250 0.1400 0.0145 0.0368 -0.0475 -0.0454 0.0430 0.0577 -0.0260 -0.1374 0.0071 0.0064 0.0249 0.0186 0.0850 0.0215 -0.0624 -0.0752 0.0933 0.0365 0.0456 0.0528 -0.0632 -0.0131 0.0450 0.0009 0.0200 0.0017 0.0280 0.0985 Assuming normal distribution, what is the probability that the next S&P500 return will be greater than 0? Please...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222 is equivalent to -2.22%). A S_P500 -0.0222 0.0032 -0.0048 -0.0058 0.1333 0.0434 0.0765 0.1081 -0.0161 -0.0121 0.1250 0.1400 0.0145 0.0368 -0.0475 -0.0454 0.0430 0.0577 -0.0260 -0.1374 0.0071 0.0064 0.0249 0.0186 0.0850 0.0215 -0.0624 -0.0752 0.0933 0.0365 0.0456 0.0528 -0.0632 -0.0131 0.0450 0.0009 0.0200 0.0017 0.0280 0.0985 What is the sample standard deviation of the stock A returns? Please write an answer in decimals. For...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222 is equivalent to -2.22%). A S_P500 -0.0222 0.0032 -0.0048 -0.0058 0.1333 0.0434 0.0765 0.1081 -0.0161 -0.0121 0.1250 0.1400 0.0145 0.0368 -0.0475 -0.0454 0.0430 0.0577 -0.0260 -0.1374 0.0071 0.0064 0.0249 0.0186 0.0850 0.0215 -0.0624 -0.0752 0.0933 0.0365 0.0456 0.0528 -0.0632 -0.0131 0.0450 0.0009 0.0200 0.0017 0.0280 0.0985 Assuming normal distribution, what is the probability that the next stock A return will be less than 0?...
Suppose XYZ Inc.'s taxable income for the current year is $15,659,000. Calculate XYZ's tax liability.
Suppose XYZ Inc.'s taxable income for the current year is $15,659,000. Calculate XYZ's tax liability.
You are an options trader with an investment bank. It appears that the S&P500 index will...
You are an options trader with an investment bank. It appears that the S&P500 index will trade between 2700 and 2500 for the next few months. How can you use options to create a profitable investment opportunity? 1 )Please explain in detail. 2) Show the payoff and profit in a graph.
You are an options trader with an investment bank. It appears that the S&P500 index will...
You are an options trader with an investment bank. It appears that the S&P500 index will trade between 2700 and 2500 for the next few months. How can you use options to create a profitable investment opportunity? Show the payoff and profit in a graph.
Here are the total returns for the S&P500 for the first ten years of this century....
Here are the total returns for the S&P500 for the first ten years of this century. Assume you invested $1 in the S&P500 on January 1, 2001. Your first year's return was -11.85%. Year Return 2001 -11.85% 2002 -21.97% 2003 28.36% 2004 10.74% 2005 4.83% 2006 15.61% 2007 5.48% 2008 -36.55% 2009 26.94% 2010 18.00% 4 points. Q1. If you invested $1 at the beginning of the time frame [1/1/2001], how much would it be worth five years later? Show...
Month Monthly Returns (%) Month Monthly Returns (%) Month Monthly Returns (%) Ended Yahoo Google S&P500...
Month Monthly Returns (%) Month Monthly Returns (%) Month Monthly Returns (%) Ended Yahoo Google S&P500 Ended Yahoo Google S&P500 Ended Yahoo Google S&P500 Dec-07 -13.241 -0.219 -0.692 Dec-06 -5.442 -5.018 1.403 Dec-05 -2.610 2.457 0.036 Nov-07 -13.794 -1.980 -4.182 Nov-06 2.544 1.767 1.899 Nov-05 8.818 8.806 3.778 Oct-07 15.861 24.632 1.590 Oct-06 4.193 18.534 3.257 Oct-05 9.249 17.595 -1.668 Sep-07 18.093 10.096 3.736 Sep-06 -12.314 6.174 2.575 Sep-05 1.561 10.650 0.810 Aug-07 -2.237 1.029 1.497 Aug-06 6.227 -2.087 2.376...
True or False 12. If you have the historical data of S&P500 index level in the...
True or False 12. If you have the historical data of S&P500 index level in the last 5 years, you can compute the returns of investment in 500 stocks in the S&P500. Assume you know the 500 constituents. 13. If you just watched bad news on the market on CNBC and if you believe the market risk premium is 0.5% for the next month and, you should short sell the market to maximize your Sharpe ratio. 14. A portfolio’s net...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT