Question
In: Finance
The following table shows the past annual returns for Stock A and Stock B, please find...
The following table shows the past annual returns for Stock A and Stock B, please find the expected return, standard deviation and coefficient of variation for Stock A, Stock B and a Portfolio that puts 40% weight on Stock A and 60% weight on Stock B.
Year Stock A Returns Stock B Returns
2005 10.30% 10.71%
2006 -0.10% 25.00%
2007 23.30% 0.38%
2008 2.20% 26.20%
2009 14.00% 11.52%
Solutions
Expert Solution
The expected return for stock A and B has been calculated using SUM function, standard deviation has been calculated using STDEV function , covariance between the stocks has been calculated using COVARIANCE function
jeff jeffy answered 1 year agoRelated Solutions
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Year
Energy (%)
Health Care (%)
2012
44.6
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2013
19.68
10.87
2014
37
10.43
2015
-42.87
-18.45
2016
28.36
20.96
If the risk-free rate is 3%, using mean-variance analysis, which
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a.
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EXCEL FILE ONLY
Refer to the table below. The table below shows the annual
returns (in percentages) for 2 major market indices. For each
index, calculate the arithmetic mean return and the geometric mean
return of full-year returns from 2005-2015. What is the
relationship between the arithmetic and geometric mean returns?
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Nasdaq Composite Index
1.37
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50.0
-31.5
-21.1
-39.3
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The following table shows the annual returns over a six year period for the S&P 500...
The following table shows the annual
returns over a six year period for the S&P 500 market index and
MCH, Inc. Assume that the historical information represents a
population. Use this data to calculate the correlation between both
sets of security returns. Discuss your findings.
Year
S&P
500
MCH,
Inc.
2013
0.15
0.37
2014
0.13
0.09
2015
0.14
-0.11
2016
-0.09
0.08
2017
0.12
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2018
0.09
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Please show me each step. Thank you
The following table shows the annual returns over a six year period for the S&P 500...
The following table shows the annual
returns over a six year period for the S&P 500 market index and
MCH, Inc. Assume that the historical information represents a
population. Use this data to calculate the correlation between both
sets of security returns. Discuss your findings.
Year
S&P
500
MCH,
Inc.
2013
0.15
0.37
2014
0.13
0.09
2015
0.14
-0.11
2016
-0.09
0.08
2017
0.12
0.11
2018
0.09
0.04
The following table contains annual returns for the stocks of ABC Corp. (ABC) and Company B...
The following table contains annual returns for the stocks of
ABC Corp. (ABC) and Company B (B). The returns are calculated
using end-of-year prices (adjusted for dividends and stock
splits). Use the information for ABC Corp. (ABC) and Company B
(B) to create an Excel spreadsheet that calculates the average
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and B using the following, respective, weightings: (1.0, 0.0),
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Below are the annual returns of the stock A, B, C and D and the market...
Below are the annual returns of the stock A, B, C and D and the
market portfolio for the period 2018-2022. Find the expected return
and standard deviation of the stock A, B, C, D and the market
portfolio. PREPARED BY HANDWRITING.
Year
Prob.
Asset A
Asset B
Asset C
Asset D
Market
2018
0,20
11,00
9,00
12,00
15,00
14,00
2019
0,25
13,00
11,00
15,00
13,00
12,00
2020
0,10
9,00
8,00
11,00
10,00
9,00
2021
0,20
12,00
12,00
11,00
13,00...
Company A and B are both service companies. For the past three years their stock returns...
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years their stock returns were:
A: -5%, 15%, 20%
B: 8%, 8%, 20%
If A and B are combined into a portfolio with 50% of the funds
invested in each stock, calculate the expected return on the
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Table 3 (below) shows annual returns for the S&P 500 for the years 2000-2016: Table 3:...
Table 3 (below) shows annual returns for the S&P 500 for
the years 2000-2016:
Table 3: Annual Returns
Year
Returns
2000
-9.0%
2001
-11.9%
2002
-22.0%
2003
28.4%
2004
10.7%
2005
4.8%
2006
15.6%
2007
5.5%
2008
-36.6%
2009
25.9%
2010
14.8%
2011
2.1%
2012
15.9%
2013
32.2%
2014
13.5%
2015
1.4%
2016
11.7%
Calculate:
The cumulative return over the 17 years;
The average annual return;
The standard deviation;
The Sharpe Ratio (assuming a risk free rate of 2.3% on...
The annual returns of three stocks for the past seven years are given in the following...
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Year
Stock X
Stock Y
Stock Z
2011
3.00%
14.00%
19.00%
2012
9.00%
7.00%
11.00%
2013
12.00%
19.00%
5.00%
2014
19.00%
13.00%
12.00%
2015
23.00%
-7.00%
11.00%
2016
5.00%
-3.00%
7.00%
2017
10.00%
9.00%
14.00%
Determine the average return and the standard deviation of
returns for each stock. Which stock has the highest expected return
and which one has the highest risk?
Determine...
Table 2 shows regressions of the standard deviation and Sharpe ratio of household portfolio annual returns...
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