Question

In: Finance

b. Calculate the standard deviation of the returns for Goodman, Landry, and the Market Index. (Hint:...

b. Calculate the standard deviation of the returns for Goodman, Landry, and the Market Index. (Hint: Use the sample standard deviation formula given in the chapter, which corresponds to the STDEV function in Excel.) Use the function wizard to calculate the standard deviations. Goodman Landry Index Standard deviation of returns

Solutions

Expert Solution

Please refer to below spreadsheet for calculations and formula references.

Formula reference -


Related Solutions

Weights, standard deviation, and average returns for 50 stocks and a market index are known. The...
Weights, standard deviation, and average returns for 50 stocks and a market index are known. The covariance matrix and correlation is also known. We need to "Pick 5 assets and explain the reason why you choose them". On what basis (Eg. The ones with the highest returns, low standard deviation, etc.)  should we pick our stocks?
Quarterly returns on an index are approximately normally distributed with a standard deviation of 10%. Index...
Quarterly returns on an index are approximately normally distributed with a standard deviation of 10%. Index returns over the most recent 20 quarters have a mean of 4%. Should a researcher who wants to show that the average quarterly returns for this index are positive reject the null hypothesis at the 5% significance level?
Quarterly returns on an index are approximately normally distributed with a standard deviation of 10%. Index...
Quarterly returns on an index are approximately normally distributed with a standard deviation of 10%. Index returns over the most recent 20 quarters have a mean of 4%. Should a researcher who wants to show that the average quarterly returns for this index are positive reject the null hypothesis at the 5% significance level?
Q1: Calculate the standard deviation of returns on a stock that had the following returns in...
Q1: Calculate the standard deviation of returns on a stock that had the following returns in the past three years: Year Return    1 9%                                                         2 -12%                                                         3 18% Q: A company has a target capital structure of 55% common stock, 10% preferred       stock, and 35% debt. Its cost of equity is 13%, the cost of preferred stock is 7%,         and the cost of debt is 8%. The relevant tax rate is 30%. What is the company’s       Weighted Average Cost...
You are to calculate the mean and standard deviation for the rate of returns for IBM...
You are to calculate the mean and standard deviation for the rate of returns for IBM and GE. Use monthly values for the period August 1, 2007 through August 1, 2018 Q10.You are to calculate the mean and standard deviation for the rate of returns for IBM and GE. Use monthly values for the periodAugust 1, 2007 through August 1, 2018. Data can be obtained from the WWW as follows 1.Go to http:www.yahoo.com. Select the Finance option 2.Enter your stock's...
Why is it useful to calculate the standard deviation of expected returns on a security? What...
Why is it useful to calculate the standard deviation of expected returns on a security? What is the main practical reality that limits the usefulness of this calculation?
Why is it useful to calculate the standard deviation of expected returns on a security? What...
Why is it useful to calculate the standard deviation of expected returns on a security? What is the main practical reality that limits the usefulness of this calculation?
Based on the following data; (a) calculate the expected return and the standard deviation of returns...
Based on the following data; (a) calculate the expected return and the standard deviation of returns for each stock. State of the Economy         Probability      Stock A Rate of Return   Stock B Rate of Return Recession                                  0.25                                 6%                                 -20% Normal Growth 0.45                                7%                                  13% Boom                                         0.3                                 11%                                   33%       (b) Calculate the expected return and the standard deviation on the portfolio, where the portfolio is formed by investing 65% of the funds in Stock A and the rest in Stock B
The standard deviation of the market index portfolio is 10%. Stock A has a beta of...
The standard deviation of the market index portfolio is 10%. Stock A has a beta of 2 and a residual standard deviation of 20%. A) calculate the total variance for an increase of .10 in its beta. B) calculate the total variance for an increase of 1% in its residual standard deviation.
The Standard Deviation of stock returns for Stock A is 60% and The standard Deviation of...
The Standard Deviation of stock returns for Stock A is 60% and The standard Deviation of market returns is 30% so If the statistical correlation between Stock A and the overall market is 0.6, then the beta for stock A is: 60%/30% x 0.6= 1.2 What is the expected risk premium for investors with this beta value compared to the market average for returns on investment?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT