Question
In: Finance
Date End of Month Stock Price (ABB) Dividend (end of month) 2012/03 SEK 29,25 SEK 0,00...
| Date | End of Month Stock Price (ABB) | Dividend (end of month) |
| 2012/03 | SEK 29,25 | SEK 0,00 |
| 2012/04 | SEK 27,75 | SEK 0,00 |
| 2012/05 | SEK 29,00 | SEK 0,12 |
| 2012/06 | SEK 27,13 | SEK 0,00 |
| 2012/07 | SEK 27,88 | SEK 0,00 |
| 2012/08 | SEK 25,25 | SEK 0,26 |
| 2012/09 | SEK 26,13 | SEK 0,00 |
| 2012/10 | SEK 26,88 | SEK 0,00 |
| 2012/11 | SEK 27,13 | SEK 0,31 |
| 2012/12 | SEK 29,25 | SEK 0,00 |
| 2013/01 | SEK 29,75 | SEK 0,00 |
| 2013/02 | SEK 29,00 | SEK 0,31 |
| 2013/03 | SEK 30,75 | SEK 0,00 |
| 2013/04 | SEK 31,13 | SEK 0,00 |
| 2013/05 | SEK 28,75 | SEK 0,35 |
| 2013/06 | SEK 28,25 | SEK 0,00 |
| 2013/07 | SEK 28,88 | SEK 0,00 |
| 2013/08 | SEK 29,50 | SEK 0,35 |
| 2013/09 | SEK 31,25 | SEK 0,00 |
| 2013/10 | SEK 34,38 | SEK 0,00 |
| 2013/11 | SEK 35,88 | SEK 0,35 |
| 2013/12 | SEK 36,50 | SEK 0,00 |
| 2014/01 | SEK 32,38 | SEK 0,00 |
| 2014/02 | SEK 32,38 | SEK 0,39 |
| 2014/03 | SEK 33,50 | SEK 0,00 |
| 2014/04 | SEK 31,25 | SEK 0,00 |
| 2014/05 | SEK 31,25 | SEK 0,39 |
| 2014/06 | SEK 32,75 | SEK 0,00 |
| 2014/07 | SEK 32,25 | SEK 0,00 |
| 2014/08 | SEK 32,13 | SEK 0,39 |
| 2014/09 | SEK 32,88 | SEK 0,00 |
| 2014/10 | SEK 31,38 | SEK 0,00 |
| 2014/11 | SEK 34,75 | SEK 0,42 |
| 2014/12 | SEK 37,50 | SEK 0,00 |
| 2015/01 | SEK 38,00 | SEK 0,00 |
| 2015/02 | SEK 40,88 | SEK 0,42 |
| 2015/03 | SEK 43,00 | SEK 0,00 |
| 2015/04 | SEK 45,13 | SEK 0,00 |
| 2015/05 | SEK 43,69 | SEK 0,42 |
| 2015/06 | SEK 43,00 | SEK 0,00 |
| 2015/07 | SEK 48,56 | SEK 0,00 |
| 2015/08 | SEK 51,00 | SEK 0,42 |
| 2015/09 | SEK 56,56 | SEK 0,00 |
| 2015/10 | SEK 64,81 | SEK 0,00 |
| 2015/11 | SEK 45,81 | SEK 23,68 |
| 2015/12 | SEK 51,88 | SEK 0,00 |
| 2016/01 | SEK 59,00 | SEK 0,00 |
| 2016/02 | SEK 57,00 | SEK 0,42 |
| 2016/03 | SEK 44,63 | SEK 0,00 |
(a). Calculate the realized return over all months, expressing your answer in percent per month.
Answer: the realized monthly return _________is %. (round to four decimals)
(b). Calculate the arithmetic average monthly return over the entire period, expressing your answer in percent.
Answer: the arithmetic average return _________is %. (round to four decimals)
(c). Calculate the standard error of average monthly return over the entire period, expressing your answer in percent.
Answer: the standard error of the estimated average return __________is %. (round to four decimals)
(d). Calculate the lower bound of the 95% confidence interval for the average monthly return over the entire period, expressing your answer in percent. Do not apply the exact 2.5% quantil of the normal distribution, but use an approximation.
Answer: the lower bound of the 95% confidence interval is__________ %. (round to four decimals)
Solutions
Expert Solution
| Date | End of Month Stock Price (ABB) | Dividend (end of month) | Monthly return = ((current EOM price + Current month dividend)/Last EOM price)-1 | Arithmatic average return = (sum of monthly return)/(No. of months) | Standard Deviation = sqrt(Σ((Monthly return - Arithmatic average return)^2)/(No. of months -1)) | Standard error = standard deviation / sqrt (no. of months -1) | Z score for 95% confidence interval | Lower bound of 95% confidence interval = Mean - (1.96)*(stddev/sqrt(no. of months)) |
| 2012/03 | 29.25 | 0 | 1.5937% | 0.08209326 | 0.011849141 | 1.96 | -0.007287209 | |
| 2012/04 | 27.75 | 0 | -5.1282% | |||||
| 2012/05 | 29 | 0.12 | 4.9369% | |||||
| 2012/06 | 27.13 | 0 | -6.4483% | |||||
| 2012/07 | 27.88 | 0 | 2.7645% | |||||
| 2012/08 | 25.25 | 0.26 | -8.5007% | |||||
| 2012/09 | 26.13 | 0 | 3.4851% | |||||
| 2012/10 | 26.88 | 0 | 2.8703% | |||||
| 2012/11 | 27.13 | 0.31 | 2.0833% | |||||
| 2012/12 | 29.25 | 0 | 7.8142% | |||||
| 2013/01 | 29.75 | 0 | 1.7094% | |||||
| 2013/02 | 29 | 0.31 | -1.4790% | |||||
| 2013/03 | 30.75 | 0 | 6.0345% | |||||
| 2013/04 | 31.13 | 0 | 1.2358% | |||||
| 2013/05 | 28.75 | 0.35 | -6.5210% | |||||
| 2013/06 | 28.25 | 0 | -1.7391% | |||||
| 2013/07 | 28.88 | 0 | 2.2301% | |||||
| 2013/08 | 29.5 | 0.35 | 3.3587% | |||||
| 2013/09 | 31.25 | 0 | 5.9322% | |||||
| 2013/10 | 34.38 | 0 | 10.0160% | |||||
| 2013/11 | 35.88 | 0.35 | 5.3810% | |||||
| 2013/12 | 36.5 | 0 | 1.7280% | |||||
| 2014/01 | 32.38 | 0 | -11.2877% | |||||
| 2014/02 | 32.38 | 0.39 | 1.2044% | |||||
| 2014/03 | 33.5 | 0 | 3.4589% | |||||
| 2014/04 | 31.25 | 0 | -6.7164% | |||||
| 2014/05 | 31.25 | 0.39 | 1.2480% | |||||
| 2014/06 | 32.75 | 0 | 4.8000% | |||||
| 2014/07 | 32.25 | 0 | -1.5267% | |||||
| 2014/08 | 32.13 | 0.39 | 0.8372% | |||||
| 2014/09 | 32.88 | 0 | 2.3343% | |||||
| 2014/10 | 31.38 | 0 | -4.5620% | |||||
| 2014/11 | 34.75 | 0.42 | 12.0778% | |||||
| 2014/12 | 37.5 | 0 | 7.9137% | |||||
| 2015/01 | 38 | 0 | 1.3333% | |||||
| 2015/02 | 40.88 | 0.42 | 8.6842% | |||||
| 2015/03 | 43 | 0 | 5.1859% | |||||
| 2015/04 | 45.13 | 0 | 4.9535% | |||||
| 2015/05 | 43.69 | 0.42 | -2.2601% | |||||
| 2015/06 | 43 | 0 | -1.5793% | |||||
| 2015/07 | 48.56 | 0 | 12.9302% | |||||
| 2015/08 | 51 | 0.42 | 5.8896% | |||||
| 2015/09 | 56.56 | 0 | 10.9020% | |||||
| 2015/10 | 64.81 | 0 | 14.5863% | |||||
| 2015/11 | 45.81 | 0.68 | -28.2672% | |||||
| 2015/12 | 51.88 | 0 | 13.2504% | |||||
| 2016/01 | 59 | 0 | 13.7240% | |||||
| 2016/02 | 57 | 0.42 | -2.6780% | |||||
| 2016/03 | 44.63 | 0 | -21.7018% |
jeff jeffy answered 1 year agoRelated Solutions
1. You've recorded the following prices and dividend payments for a stock: Month Stock price Dividend...
1. You've recorded the following prices and dividend payments
for a stock:
Month
Stock price
Dividend
1
161.38
2
161.54
1.32
3
159.96
4
164.61
5
164.8
1.32
Part 1
What was the arithmetic average monthly return?
Part 2
What was the geometric average return per month?
Part 3
What was the total return over the entire period?
2. Which statements are correct? The geometric average return
_____.
Check all that apply:
is better for forecasting returns over many periods...
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...
XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2010
$ 124
$ 4
2011
$ 135
$ 4
2012
$ 115
$ 4
2013
$ 120
$ 4
An investor buys six shares of XYZ at the beginning of 2010,
buys another two shares at the beginning of 2011, sells one share
at the beginning of 2012, and sells all seven remaining shares at...
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...
XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2010
$ 124
$ 4
2011
$ 135
$ 4
2012
$ 115
$ 4
2013
$ 120
$ 4
An investor buys six shares of XYZ at the beginning of 2010,
buys another two shares at the beginning of 2011, sells one share
at the beginning of 2012, and sells all seven remaining shares at...
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...
XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2010
$ 124
$ 4
2011
$ 135
$ 4
2012
$ 115
$ 4
2013
$ 120
$ 4
An investor buys six shares of XYZ at the beginning of 2010,
buys another two shares at the beginning of 2011, sells one share
at the beginning of 2012, and sells all seven remaining shares at...
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...
XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid
at Year-End
2010
$
102
$ 3
2011
$
105
$ 3
2012
$
91
$ 3
2013
$
96
$ 3
An investor buys three shares of XYZ at the beginning of 2010,
buys another one shares at the beginning of 2011, sells one share
at the beginning of 2012, and sells all three remaining shares at
the beginning of 2013.
a. What are the...
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...
XYZ stock price and dividend history are as follows: Year
Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 140 $ 4
2011 $ 159 $ 4 2012 $ 132 $ 4 2013 $ 137 $ 4 An investor buys five
shares of XYZ at the beginning of 2010, buys another three shares
at the beginning of 2011, sells one share at the beginning of 2012,
and sells all seven remaining shares at the beginning of 2013. a.
What are the...
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...
XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2015
$
102
$
3
2016
105
3
2017
91
3
2018
96
3
An investor buys three shares of XYZ at the beginning of 2015,
buys another one shares at the beginning of 2016, sells one share
at the beginning of 2017, and sells all three remaining shares at
the beginning of 2018.
a. What are the arithmetic and geometric average
time-weighted rates...
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...
XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2010
$ 124
$ 4
2011
$ 135
$ 4
2012
$ 115
$ 4
2013
$ 120
$ 4
An investor buys six shares of XYZ at the beginning of 2010,
buys another two shares at the beginning of 2011, sells one share
at the beginning of 2012, and sells all seven remaining shares at...
XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...
XYZ's stock price and dividend history are as follows:
Year
Beginning-of-Year
Price
Dividend Paid at
Year-End
2016
$
100
$
4
2017
120
4
2018
90
4
2019
100
4
An investor buys three shares of XYZ at the beginning of 2016,
buys another two shares at the beginning of 2017, sells one share
at the beginning of 2018, and sells all four remaining shares at
the beginning of 2019.
a. What are the arithmetic and geometric
average time-weighted rates...
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...
XYZ stock price and dividend history are as follows: Year
Beginning-of-Year Price Dividend Paid at Year-End 2015 $ 130 $ 5
2016 144 5 2017 120 5 2018 125 5 An investor buys six shares of XYZ
at the beginning of 2015, buys another three shares at the
beginning of 2016, sells one share at the beginning of 2017, and
sells all eight remaining shares at the beginning of 2018. a. What
are the arithmetic and geometric average time-weighted rates...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Create a Hangman game using C++ by QT creator. please separate each code that will insert...
- How many grams of NaCl are contained in 350. mL of a 0.152 M solution of...
- Why does diversity matter for business? Provide 2-3 benefits and 2-3 challenges
- Dr C #1 An object with mass = 5 kg is oscillating on the end of...
- Calculate the value of a bond that matures in 13 years and has a $1,000 par...
- The documentary Gender Revolution implies that gender today—gender identities and categories—are vastly different today than they...
- 12. What is the payment in month 13 on a CAM loan for $250,000 with a...
ADVERTISEMENT