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 2 years agoRelated Solutions
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