Question

In: Finance

Year Stock X 1 8.00% 2 -6.00% 3 13.00% 4 10.00% What is the standard deviation...

Year	Stock X
1	8.00%
2	-6.00%
3	13.00%
4	10.00%

What is the standard deviation of Stock X's returns?

Year	Stock X	Stock Y
1	13.00%	-7.00%
2	-7.00%	17.00%
3	17.00%	6.00%
4	10.00%	9.00%

What is the standard deviation of the returns of Stock X?

Note: please post your excel formulas for these problems as well.

Expert Solution

You need to use Financial calculator to solve this problem. You can download it.

Standard Deviation is the deviation of the returns around Mean returns

1st answer:

Calculator strokes:

2nd + Data => XO1 = 8%, (Down Arrow Key in calculator), XO2 = -6%, (Down Arrow Key in calculator), XO3 = 13%, (Down Arrow Key in calculator), XO4 = 10% {So here you are entering all the values of returns in the calculator, now calculator will find the mean and standard deviation)

2nd + Stat => 2.5860 (press down arrow key for 4 times)

So the Standard Deviation of return is 2.5860.

2nd Answer:

Just change the value of Xs.

Calculator Strokes:

2nd + Data => XO1 = 13%, (Down Arrow Key in calculator), XO2 = -7%, (Down Arrow Key in calculator), XO3 = 17%, (Down Arrow Key in calculator), XO4 = 10% {So here you are entering all the values of returns in the calculator, now calculator will find the mean and standard deviation)

2nd + Stat => 9.14 (press down arrow key for 4 times)

So the Standard Deviation of return is 9.14.

jeff jeffy answered 1 year ago

Year Stock X Stock Y 1 12.00% -6.00% 2 -9.00% 16.00% 3 14.00% 8.00% 4 4.00%...

Year Stock X Stock Y 1 12.00% -6.00% 2 -9.00% 16.00% 3 14.00% 8.00% 4 4.00% 8.00% What is the correlation of Stock X and Stock Y?

Consider the following project: Year 0 1 2 3 4 Project A -20.00 8.00 7.00 6.00...

Consider the following project: Year 0 1 2 3 4 Project A -20.00 8.00 7.00 6.00 7.00 Find the payback for this project. (ROUND TO TWO DECIMAL PLACES)

Year Stock X Stock Y 1 12.00% 10.00% 2 4.00% 18.00% 3 15.00% 2.00% 4 1.00%...

Year Stock X Stock Y 1 12.00% 10.00% 2 4.00% 18.00% 3 15.00% 2.00% 4 1.00% 8.00% What is the covariance of the returns of Stock X with the returns of Stock Y?" Please round to 6 decimal places, the answer should be negative. Thanks

Question 5 a) (1) X~Normal(mean=4, standard deviation=3), (2) Y~Normal(mean=6, standard deviation = 4), and (3) X...

Question 5 a) (1) X~Normal(mean=4, standard deviation=3), (2) Y~Normal(mean=6, standard deviation = 4), and (3) X and Y are independent, then, P(X+Y>13) equals (in 4 decimal places) Answers options: a) 0.7257, b) 0.3341, c) 0.2743, d) 0.6759, e) none of these b) Let X~Gamma(4, 1.2). Which of the following is possible R code for computing the probability that X < 2.6? Answers options: a) dgam(2.6, 4, 1.2), b) pgamma(4, 1.2, 2.6), c) dgamma(2.6, 4, 1.2), d) pgamma(2.6, 4, 1.2), e)...

A 4 Exapected Return 10% Risk Free Rate 4% Standard Deviation 13.00% What should be the...

A 4 Exapected Return 10% Risk Free Rate 4% Standard Deviation 13.00% What should be the weight of Risky Portfolio 95.25% 75.49% 88.75% 83.92%

Stock Returns Month Stock A Stock C Stock H Stock J 1 6.36% 23.39% 8.00% 6.00%...

Stock Returns Month Stock A Stock C Stock H Stock J 1 6.36% 23.39% 8.00% 6.00% 2 9.20% 17.97% 7.00% 2.06% 3 4.02% 19.99% 5.00% 3.61% 4 9.48% 8.88% 6.00% 2.04% 5 3.93% 24.30% 9.00% 3.07% 6 9.02% 9.85% 5.60% 4.69% 7 8.50% 14.78% 4.60% 5.68% 8 7.28% 12.98% 9.40% 5.32% 9 6.78% 17.48% 6.80% 2.31% 10 10.45% 9.91% 3.50% 2.63% 11 8.92% 9.39% 4.90% 2.58% 12 7.81% 19.19% 5.80% 2.98% Please use the data to calculate the covariance matrix...

determine (1) % Fe in unknown sample (2)average % Fe (3)standard deviation (4)relative standard deviation For...

determine (1) % Fe in unknown sample (2)average % Fe (3)standard deviation (4)relative standard deviation For gravimetric determination of Iron as Fe2O3, how do I calculate? weighed sample of unknown containing Fe to produce ~0.3g of Fe2O3 (~0.6 - 1 g of unkonwn) I got 0.75g from unknow sample. I got 0.05g from Fe2O3 collected from unknow.

1. What is the mean and median? 2. what is the standard deviation? 3. what is...

1. What is the mean and median? 2. what is the standard deviation? 3. what is the minimum and maximum at a minimum? Years Weekend Daily Tour Income Daily Gross Revenue Number of Tourists 1 Friday 3378 4838.95 432 1 Saturday 1198 3487.78 139 1 Sunday 3630 4371.3 467 2 Friday 4550 6486.48 546 2 Saturday 2467 3437.39 198 2 Sunday 3593 4571.43 452 3 Friday 898 2515.15 119 3 Saturday 2812 5462.11 342 3 Sunday 2650 5498.89 321 4...

1) Consider X a normal random variable with mean 4 and standard deviation 2. Given that...

1) Consider X a normal random variable with mean 4 and standard deviation 2. Given that P(X<6)=0.841345 , compute P(2<= x <= 6) 2)Consider X a normal random variable with mean 10 and standard deviation 4. Given that P(x>9)=0.598708 and P(x<12)=0.691464 . Compute P(8< x < 11).

Year NYSE Stock X 1 - 26.5% - 21.0% 2 37.2 17.0 3 23.8 20.0 4...

Year NYSE Stock X 1 - 26.5% - 21.0% 2 37.2 17.0 3 23.8 20.0 4 - 7.2 4.0 5 6.6 9.2 6 20.5 19.7 7 30.6 17.0 A. Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X's beta coefficient. Round your answer to two decimal places. b. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for both Stock...