Question
In: Finance
Risk and return You are considering an investment in the stock market and have identified three...
Risk and return
You are considering an investment in the stock market and have identified three potential stocks, they are Crown (ASX: CWN), Tencent (HKG: 0700), and Commonwealth Bank (ASX: CBA). The historical prices for the past 10 years are shown in the table below. Assume no dividend is distributed during this period.
|
Year |
Crown |
Tencent |
Commonwealth (CBA) |
|
2010 |
7.76 |
29.04 |
53.63 |
|
2011 |
8.57 |
40.40 |
52.15 |
|
2012 |
8.09 |
37.94 |
50.39 |
|
2013 |
11.59 |
54.28 |
64.10 |
|
2014 |
16.68 |
108.70 |
73.83 |
|
2015 |
13.61 |
132 |
88.85 |
|
2016 |
12.27 |
144.90 |
78.67 |
|
2017 |
11.4 |
204.40 |
81.66 |
|
2018 |
13.25 |
463.60 |
78.87 |
|
2019 |
11.95 |
346 |
69.91 |
- Calculate the standard deviation of the Crown, Tencent, and CBA. (Please provide me with excel work )
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Risk and return You are considering an investment in the stock market and have identified three...
Risk and return
You are considering an investment in the stock market and have
identified three potential stocks, they are Crown (ASX: CWN),
Tencent (HKG: 0700), and Commonwealth Bank (ASX: CBA). The
historical prices for the past 10 years are shown in the table
below. Assume no dividend is distributed during
this period.
Year
Crown
Tencent
Commonwealth (CBA)
2010
7.76
29.04
53.63
2011
8.57
40.40
52.15
2012
8.09
37.94
50.39
2013
11.59
54.28
64.10
2014
16.68
108.70
73.83
2015
13.61...
Risk and return You are considering an investment in the stock market and have identified three...
Risk and return
You are considering an investment in the stock market and have
identified three potential stocks, they are Crown (ASX: CWN),
Tencent (HKG: 0700) and Commonwealth Bank (ASX: CBA). The
historical prices for the past 10 years are shown in the table
below. Assume no dividend is distributed during
this period.
Year
Crown
Tencent
Commonwealth (CBA)
2010
7.76
29.04
53.63
2011
8.57
40.40
52.15
2012
8.09
37.94
50.39
2013
11.59
54.28
64.10
2014
16.68
108.70
73.83
2015
13.61...
Risk and return You are considering an investment in the stock market and have identified two...
Risk and return You are considering an investment in the stock
market and have identified two potential stocks, they are Westpac
Banking Corp. (ASX: WBC) and Singapore Airlines Ltd. (SGX: C6L).
The historical prices for the past 10 years are shown in the table
below.
Year
ASX:WBC
SGX:C6L
2011
23.70
13.82
2012
22.85
14.76
2013
21.01
11.1
2014
27.85
10.99
2015
30.85
11.03
2016
31.71
9.90
2017
30.96
11.31
2018
24.55
9.65
1. Which stocks would you prefer to own?...
You are considering an investment in the stock market and have identified three potential stocks, they...
You are considering an investment in the stock market and have
identified three potential stocks, they are Crown (ASX: CWN),
Tencent (HKG: 0700) and Commonwealth Bank (ASX: CBA). The
historical prices for the past 10 years are shown in the table
below. Assume no dividend is distributed during
this period.
Year
Crown
Tencent
Commonwealth (CBA)
2010
7.76
29.04
53.63
2011
8.57
40.40
52.15
2012
8.09
37.94
50.39
2013
11.59
54.28
64.10
2014
16.68
108.70
73.83
2015
13.61
132
88.85
2016...
You are considering an investment in the stock market and have identified two potential stocks
Risk and return You are considering an investment in the stock market and have identified two potential stocks, they are Rio Tinto (NYSE: RIO) and Amazon (NASDAQ: AMZN). The year-end historical prices for the years 2010 to 2018 are shown in the table below. YearRio TintoAmazon201048.51125.41201169.48169.64201260.46194.44201356.47264.27201453.15358.69201544.13354.53201624.65587.00201744.79823.48201856.111450.891. Which stocks would you prefer to own? Would every rational investor make the same choice? Explain your answer(s). 2. Calculate the covariance and correlation coefficient between the two stocks. Does it appear that a portfolio consisting of...
You are considering an investment in the stock market and have identified two potential stocks, they...
You are considering an investment in the stock market and have
identified two potential stocks, they are Rio Tinto (NYSE: RIO) and
Amazon (NASDAQ: AMZN). The historical prices for the past 10 years
are shown in the table below. Year Rio Tinto Amazon 2010 48.51
125.41 2011 69.48 169.64 2012 60.46 194.44 2013 56.47 264.27 2014
53.15 358.69 2015 44.13 354.53 2016 24.65 587.00 2017 44.79 823.48
2018 56.11 1450.89 1. Which stocks would you prefer to
own? Would everyone...
Part 2 (20 marks) Risk and return You are considering an investment in the stock market...
Part 2
Risk and return You are considering an investment in the stock
market and have identified two potential stocks, they are Westpac
Banking Corp. (ASX: WBC) and Singapore Airlines Ltd. (SGX: C6L).
The historical prices for the past 10 years are shown in the table
below
Year
ASX: WBC
SGX: C6L
2009
23.70
13.82
2010
22.85
14.76
2011
21.01
11.1
2012
27.85
10.99
2013
30.66
9.59
2014
34.23
12.65
2015
30.85
11.03
2016
31.71
9.9
2017
30.96
11.31
2018...
The market and Stock A have the following probability distributions: Probability Return on Market Return on...
The market and Stock A have the following probability
distributions:
Probability
Return on Market
Return on Stock A
0.15
15%
18%
0.3
12%
15%
0.55
10%
11%
a. Calculate the expected rates of return for the market and
Stock A.
b. Calculate the standard deviations for the market and Stock
A.
c. Calculate the coefficient of variation for the market and
Stock A.
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a-1. Calculate the probability of earning a
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for investment. The relatively risky fund promises an expected
return of 13.7% with a standard deviation of 19.3%. The relatively
less risky fund promises an expected return and standard deviation
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of earning a negative return for each fund. (Round final answer to
4 decimal places.) Probability Riskier fund Less risky fund a-2.
Which...
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