Question
In: Finance
You've collected the following historical rates of return for stocks A and B: Year (t) rA,t...
You've collected the following historical rates of return for stocks A and B:
| Year (t) | rA,t | rB,t |
| 2016 | 0.02 | 0.02 |
| 2015 | 0.08 | 0.05 |
| 2014 | 0.12 | 0.07 |
Part 1: What was the average annual return for stock A= 0.0733
Part 2: What was the average annual return for stock B?= 0.04667
Part 3: What was the standard deviation of returns for stock A?
Part 4: What was the standard deviation of returns for stock B?
Can you solve Part 3 and 4 using the information given? Part 1 and 2 are already answered.
Solutions
Expert Solution
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jeff jeffy answered 1 year agoRelated Solutions
Historical Realized Rates of Return Stocks A and B have the following historical returns: Year 2012...
Historical Realized Rates of Return
Stocks A and B have the following historical returns:
Year
2012
-19.60%
-14.00%
2013
20.00
30.00
2014
12.00
35.30
2015
-1.00
-10.20
2016
31.50
1.80
Calculate the average rate of return for each stock during the
5-year period. 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. What would have been the realized rate...
REALIZED RATES OF RETURN Stocks A and B have the following historical returns: Year Stock A's...
REALIZED RATES OF RETURN
Stocks A and B have the following historical returns:
Year
Stock A's Returns, rA
Stock B's Returns, rB
2011
- 15.90%
- 16.50%
2012
33.50
21.20
2013
11.25
31.60
2014
- 6.00
- 8.80
2015
34.00
29.35
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...
Problem 6-13 Historical Realized Rates of Return Stocks A and B have the following historical returns:...
Problem 6-13
Historical Realized Rates of Return
Stocks A and B have the following historical returns:
Year
2012
-22.60%
-15.90%
2013
32.50
18.60
2014
17.75
28.30
2015
-2.50
-13.50
2016
31.75
39.40
Calculate the average rate of return for each stock during the
5-year period. 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. What would have been the...
Problem 6-13 Historical Realized Rates of Return Stocks A and B have the following historical returns:...
Problem 6-13
Historical Realized Rates of Return
Stocks A and B have the following historical returns:
Year
2012
-23.50%
-14.60%
2013
29.75
21.40
2014
10.50
25.40
2015
-1.75
-7.50
2016
32.50
22.80
Calculate the average rate of return for each stock during the
5-year period. 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. What would have been the...
Problem 6-13 Historical Realized Rates of Return Stocks A and B have the following historical returns:...
Problem 6-13
Historical Realized Rates of Return
Stocks A and B have the following historical returns:
Year
2012
-18.30%
-15.70%
2013
34.50
24.80
2014
15.00
26.00
2015
-4.25
-12.10
2016
32.25
36.20
Calculate the average rate of return for each stock during the
5-year period. 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. What would have been the...
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...
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