Question
In: Finance
Year Rp Rm Rf 2000 18.1832 -24.9088 5.112 2001 -3.454 -15.1017 5.051 2002 47.5573 20.784 3.816...
| Year | Rp | Rm | Rf |
| 2000 | 18.1832 | -24.9088 | 5.112 |
| 2001 | -3.454 | -15.1017 | 5.051 |
| 2002 | 47.5573 | 20.784 | 3.816 |
| 2003 | 28.7035 | 9.4163 | 4.2455 |
| 2004 | 29.8613 | 8.7169 | 4.2182 |
| 2005 | 11.2167 | 16.3272 | 4.3911 |
| 2006 | 32.2799 | 14.5445 | 4.7022 |
| 2007 | -41.0392 | -36.0483 | 4.0232 |
| 2008 | 17.6082 | 9.7932 | 2.2123 |
| 2009 | 14.1058 | 16.5089 | 3.8368 |
| 2010 | 16.1978 | 8.0818 | 3.2935 |
| 2011 | 11.558 | 15.1984 | 1.8762 |
| 2012 | 42.993 | 27.1685 | 1.7574 |
| 2013 | 18.8682 | 17.2589 | 3.0282 |
| 2014 | -1.4678 | 5.1932 | 2.1712 |
| 2015 | 9.2757 | 4.4993 | 2.2694 |
| 2016 | 8.5985 | 23.624 | 2.4443 |
When performing calculations in the following problems, use the numbers in the table as-is. I.e., do NOT convert 8.5985 to 8.5985% (or 0.085985). Just use plain 8.5985.
1. What is the portfolio's M2 measure?
2. What is the Sharpe Ratio of the portfolio using the following equation: Sharpe Ratio = Rp − Rf / (σp)
Solutions
Expert Solution
Note: No rounding has been done. I'm providing the spreadsheet as per your instructions in the questions
Formulas used in cell B19 =AVERAGE(B2:B18)
Formulas used in cell C19 =AVERAGE(C2:C18)
Formulas used in cell D19 =AVERAGE(D2:D18)
Formulas used in cell B20 =STDEV.S(B2:B18)
Formulas used in cell C20 =STDEV.S(C2:C18)
Formulas used in cell B21
=((C20/B20)*B19+(1-(C20/B20))*D19)-C19
Formulas used in cell B22 =(B19-D19)/B20
jeff jeffy answered 1 year agoRelated Solutions
Year Rp Rm Rf 2000 18.1832 -24.9088 5.112 2001 -3.454 -15.1017 5.051 2002 47.5573 20.784 3.816...
Year
Rp
Rm
Rf
2000
18.1832
-24.9088
5.112
2001
-3.454
-15.1017
5.051
2002
47.5573
20.784
3.816
2003
28.7035
9.4163
4.2455
2004
29.8613
8.7169
4.2182
2005
11.2167
16.3272
4.3911
2006
32.2799
14.5445
4.7022
2007
-41.0392
-36.0483
4.0232
2008
17.6082
9.7932
2.2123
2009
14.1058
16.5089
3.8368
2010
16.1978
8.0818
3.2935
2011
11.558
15.1984
1.8762
2012
42.993
27.1685
1.7574
2013
18.8682
17.2589
3.0282
2014
-1.4678
5.1932
2.1712
2015
9.2757
4.4993
2.2694
2016
8.5985
23.624
2.4443
When performing calculations in the following problems, use...
Year Rp Rm Rf 2000 18.1832 -24.9088 5.112 2001 -3.454 -15.1017 5.051 2002 47.5573 20.784 3.816...
Year
Rp
Rm
Rf
2000
18.1832
-24.9088
5.112
2001
-3.454
-15.1017
5.051
2002
47.5573
20.784
3.816
2003
28.7035
9.4163
4.2455
2004
29.8613
8.7169
4.2182
2005
11.2167
16.3272
4.3911
2006
32.2799
14.5445
4.7022
2007
-41.0392
-36.0483
4.0232
2008
17.6082
9.7932
2.2123
2009
14.1058
16.5089
3.8368
2010
16.1978
8.0818
3.2935
2011
11.558
15.1984
1.8762
2012
42.993
27.1685
1.7574
2013
18.8682
17.2589
3.0282
2014
-1.4678
5.1932
2.1712
2015
9.2757
4.4993
2.2694
2016
8.5985
23.624
2.4443
When performing calculations in the following problems, use...
Year Rp Rm Rf 2000 18.1832 -24.9088 5.112 2001 -3.454 -15.1017 5.051 2002 47.5573 20.784 3.816...
Year
Rp
Rm
Rf
2000
18.1832
-24.9088
5.112
2001
-3.454
-15.1017
5.051
2002
47.5573
20.784
3.816
2003
28.7035
9.4163
4.2455
2004
29.8613
8.7169
4.2182
2005
11.2167
16.3272
4.3911
2006
32.2799
14.5445
4.7022
2007
-41.0392
-36.0483
4.0232
2008
17.6082
9.7932
2.2123
2009
14.1058
16.5089
3.8368
2010
16.1978
8.0818
3.2935
2011
11.558
15.1984
1.8762
2012
42.993
27.1685
1.7574
2013
18.8682
17.2589
3.0282
2014
-1.4678
5.1932
2.1712
2015
9.2757
4.4993
2.2694
2016
8.5985
23.624
2.4443
When performing calculations in the following problems, use...
The following six (4) questions are based on the following data: Year Rp Rm Rf 2000...
The following six (4) questions are based on the following
data:
Year
Rp
Rm
Rf
2000
18.1832
-24.9088
5.112
2001
-3.454
-15.1017
5.051
2002
47.5573
20.784
3.816
2003
28.7035
9.4163
4.2455
2004
29.8613
8.7169
4.2182
2005
11.2167
16.3272
4.3911
2006
32.2799
14.5445
4.7022
2007
-41.0392
-36.0483
4.0232
2008
17.6082
9.7932
2.2123
2009
14.1058
16.5089
3.8368
2010
16.1978
8.0818
3.2935
2011
11.558
15.1984
1.8762
2012
42.993
27.1685
1.7574
2013
18.8682
17.2589
3.0282
2014
-1.4678
5.1932
2.1712
2015
9.2757
4.4993
2.2694
2016...
Year Number of Alternative-Fueled Vehicles in US 2000 394,664 2001 425,457 2002 471,098 2003 533,999 2004...
Year
Number of Alternative-Fueled Vehicles in US
2000
394,664
2001
425,457
2002
471,098
2003
533,999
2004
565,492
2005
592,125
2006
634,562
2007
695,766
3. Find the correlation and regression lines for the data
above.
r=
LinReg(ax+b)=
Year Number of Alternative-Fueled Vehicles in US 2000 394,664 2001 425,457 2002 471,098 2003 533,999 2004...
Year
Number of Alternative-Fueled Vehicles in US
2000
394,664
2001
425,457
2002
471,098
2003
533,999
2004
565,492
2005
592,125
2006
634,562
2007
695,766
1. Do the variables have significant correlation? For full
credit, you must show each step of the hypothesis test. Use the
0.05 significance.
2. In 2008, the price of gas dropped drastically and hit a low
average of $1.59 for the nation. What effect do you think this will
have on the alternative-fuel car sales, if any?...
Year Percentage 2000 28 2001 32 2002 36 2003 40 2004 44 2005 51 2006 53...
Year Percentage
2000 28
2001 32
2002 36
2003 40
2004 44
2005 51
2006 53
2007 57
2008 60
2009 66
Forecast the percentage of tax returns that will be
electronically filed for 2010 using exponential smoothing with
trend adjustment.
alpha= 0.3 and beta= 0.4. Then calculate MAD.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------
Quarter Price
Q1 2017 186.3
Q2 2017 190.9
Q3 2017 195.2
Q4 2017 195.2
Q1 2018 198.7
Q2 2018 201.2
Forecast the price index for Q3 2018 using a three-period...
year Percentage 2000 28 2001 32 2002 37 2003 43 2004 47 2005 52 2006 56...
year
Percentage
2000
28
2001
32
2002
37
2003
43
2004
47
2005
52
2006
56
2007
58
2008
61
2009
66
Forecast the percentage of tax returns that will be
electronically filed for 2010 using exponential smoothing with
trend adjustment. Set
alphaα =0.5 and β=0.6
Sukhum, Inc. Balance Sheet as of December 31, for 2001 and 2002 Assets 2001 2002 Liabilities...
Sukhum, Inc. Balance Sheet as of December 31, for 2001 and
2002
Assets
2001
2002
Liabilities and equity
2001
2002
Current liabilities
Accounts payable
$210
$210
Current assets
Notes payable
110
110
Cash
$45
$45
Total
$320
$320
Accounts receivable
260
260
Long-term debt
205
205
Inventory
320
340
Stockholders’ equity
Total
$625
$645
Common stock
290
???
Retained earnings
795
???
Fixed assets
985
1090
Total Equity
$1,085
???
Total assets
$1,610
$1,735
Total liabilities and eq
$1,610
???...
Ri = [Rf + ((Rm – Rf) x Bi)] Please define and explain the following components:...
Ri = [Rf + ((Rm – Rf) x Bi)]
Please define and explain the
following components:
Ri
Rf
(Rm – Rf)
Bi
What does the CAPM tell us about the required return on a risky
investment?
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