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In: Finance
You are given the returns for the following three stocks: Year Stock A Stock B Stock...
You are given the returns for the following three stocks: Year Stock A Stock B Stock C 1 9 % 9 % -24 % 2 9 14 37 3 9 6 16 4 9 4 9 5 9 12 7 Calculate the arithmetic return, geometric return, and standard deviation for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You are given the returns for the following three stocks: Year Stock A Stock B Stock...
You are given the returns for the following three stocks:
Year
Stock A
Stock B
Stock C
1
14%
15%
-20%
2
14%
20%
35%
3
14%
13%
35%
4
14%
8%
15%
5
14%
14%
5%
Calculate the arithmetic return, geometric return, and standard
deviation for each stock. (Do not round intermediate calculations.
Enter your answers as a percent rounded to 2 decimal places. Omit
the "%" sign in your response.)
You are given the returns for the following three stocks: Year Stock A Stock B Stock...
You are given the returns for the following three stocks:
Year
Stock A
Stock B
Stock C
1
6
%
3
%
-21
%
2
6
6
20
3
6
8
16
4
6
7
9
5
6
6
6
Calculate the arithmetic return, geometric return, and standard
deviation for each stock.
You are given the returns for the following three stocks: Return Year Stock A Stock B...
You are given the returns for the following three stocks:
Return
Year
Stock A
Stock B
Stock C
1
8%
7%
-22%
2
8%
15%
35%
3
8%
3%
15%
4
8%
12%
3%
5
8%
3%
9%
Calculate the arithmetic return,
geometric return, and standard deviation for each stock. Do you
notice anything about the relationship between an asset’s
arithmetic return, standard deviation, and geometric return? Do you
think this relationship will always hold?
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns,
rA
Stock B's Returns,
rB
2011
- 22.40%
- 15.60%
2012
27.75
19.70
2013
10.00
37.00
2014
- 5.00
- 9.90
2015
23.75
2.90
a. Calculate the average rate of return for stock A during the
period 2011 through 2015. Round your answer to two decimal
places.
%_________
Calculate the average rate of return for stock B during the period
2011 through 2015. Round your answer to...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns,
rA
Stock B's Returns,
rB
2014
(16.20
%)
(13.00
%)
2015
33.50
24.10
2016
15.00
30.90
2017
(1.75
)
(9.60
)
2018
27.25
25.40
Calculate the average rate of return for each stock during the
period 2014 through 2018. Round your answers to two decimal places.
Stock A: %
Stock B: %
Assume that someone held a portfolio consisting of 50% of Stock
A and 50% of Stock B....
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock
A's Returns, rA Stock B's Returns, rB 2013 - 19.40% - 17.90% 2014
37.75 23.80 2015 15.25 35.70 2016 - 5.50 - 6.70 2017 26.25
19.45
A. Calculate the average rate of return for stock A during the
period 2013 through 2017. Round your answer to two decimal places.
%
Calculate the average rate of return for stock B during the
period 2013 through 2017. Round your answer to...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year Stock A's Returns, rA Stock B's Returns, rB
2014 (18.50 %) (13.50%)
2015 32.50 19.90
2016 16.75 25.50
2017 (5.00 ) (12.70 )
2018 27.50 34.05
a. Calculate the average rate of return for each stock during
the period 2014 through 2018. Round your answers to two decimal
places.
Stock A: % Stock B: %
b. Assume that someone held a portfolio consisting of 50% of
Stock A and 50%...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns, rA
Stock B's Returns, rB
2013
- 23.10%
- 16.70%
2014
39.25
28.30
2015
16.50
37.90
2016
- 1.75
- 7.70
2017
26.25
15.35
a Calculate the average rate of return for stock A during the
period 2013 through 2017. Round your answer to two decimal
places.
Calculate the average rate of return for stock B
during the period 2013 through 2017. Round your answer to...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns, rA
Stock B's Returns, rB
2011
- 23.90%
- 12.00%
2012
24.75
27.40
2013
11.75
38.40
2014
- 1.25
- 6.50
2015
24.75
-11.20
Calculate the average rate of return for stock A during the
period 2011 through 2015. Round your answer to two decimal
places.
%
Calculate the average rate of return for stock B during the period
2011 through 2015. Round your answer to two...
Stocks A and B have the following returns: Stock A Stock B 1 0.11 ...
Stocks A and B have the following returns:
Stock A
Stock B
1
0.11
0.06
2
0.06
0.04
3
0.15
0.04
4
0.03
0.01
5
0.07
-0.03
a. What are the expected returns of the two
stocks?
b. What are the standard deviations of the
returns of the two stocks?
c. If their correlation is 0.48, what is the
expected return and standard deviation of a portfolio of 56% stock
A and 44%...
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