Question
In: Finance
The stock market provided the following return over the last 3 years. Year Return 2016 +15...
The stock market provided the following return over the last 3 years.
|
Year |
Return |
|
2016 |
+15 |
|
2017 |
-30 |
|
2018 |
+35 |
- What is the arithmetic average return?
- What is the geometric average return?
- Suppose you invested $1000 at the beginning of each of 2016,2017,2018 and withdrew all funds at the end of 2018, what is your average return (IRR)
Solutions
Expert Solution
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
jeff jeffy answered 1 year agoRelated Solutions
The rate of return on Cherry Jalopies, Inc., stock over the last five years was 15...
The rate of return on Cherry Jalopies, Inc., stock over the last
five years was 15 percent, 11 percent, -1 percent, 4 percent, and
13 percent. Over the same period, the return on Straw Construction
Company’s stock was 16 percent, 20 percent, -3 percent, 1 percent,
and 12 percent.
Calculate the variances and the standard deviations for Cherry
and Straw. (Enter variance as a decimal and standard
deviation as a percent. Round your variance to 5 decimal places and
standard...
The risk-free rate over the last ve years was 1% per year. The market return averaged...
The risk-free rate over the last ve years was 1% per year. The
market return averaged 13% per year with a standard deviation of
20%. The Copper Fund had an alpha of 2.5% per year with a beta of
0.7 while the Gold Fund had an alpha of 3.6% with a beta of 1.4.
The Sharpe ratios of the two funds were 0.48 and 0.39 respectively.
Investors hold these mutual funds in conjunction with others to
create a well-diversified portfolio...
Below, are Ally Corp's return over the prior 3 years, the market return over the prior...
Below, are Ally Corp's return over the prior 3 years, the market
return over the prior 3 years, and the risk-free rate over the
prior 3 years:
Year 1: Ally
11% Market
10% risk-free
rate 1%
Year 2: Ally 13% Market -3%
risk-free rate 2.4%
Year 3: Ally
21% Market
28% risk-free rate 1.6%
Please calculate Ally's CAPM alpha (alpha) by performing a
market model regression of Ally's excess returns over the 3 year
period on the market's excess returns over...
Below, are Ally Corp's return over the prior 3 years, the market return over the prior...
Below, are Ally Corp's return over the prior 3 years, the market
return over the prior 3 years, and the risk-free rate over the
prior 3 years:
Year 1: Ally
11% Market
10% risk-free
rate 1%
Year 2: Ally 13% Market -3%
risk-free rate 2.4%
Year 3: Ally
21% Market
28% risk-free rate 1.6%
Please calculate Ally's CAPM alpha (alpha) by performing a
market model regression of Ally's excess returns over the 3 year
period on the market's excess returns over...
The rates of return on Cherry Jalopies, Inc., stock over the last five years were 16...
The rates of return on Cherry Jalopies, Inc., stock over the
last five years were 16 percent, 11 percent, −1 percent, 6 percent,
and 11 percent. What is the geometric return for Cherry Jalopies,
Inc.? (Do not round intermediate calculations. Enter your answer as
a percent rounded to 2 decimal places.)
You have observed the following returns over time: Year Stock X Stock Y Market 2011 15...
You have observed the following returns over time:
Year Stock X Stock Y Market
2011 15 % 14 % 12 %
2012 20 7 8
2013 -13 -4 -12
2014 3 1 1
2015 21 11 14
Assume that the risk-free rate is 4% and the market risk
premium is 6%. The data has been collected in the Microsoft Excel
Online file below. Open the spreadsheet and perform the required
analysis to answer the questions below.
What is the beta...
1. Calculate the average return over the last 3 years. 2. Calculate the standard deviation of...
1. Calculate the average return over the last 3 years.
2. Calculate the standard deviation of your company’s returns
over the last 3 years.
[I will make sure to give thumbs up to those who
answer]
8/1/2016
100.975754
9/1/2016
108.172951
10/1/2016
108.6418
11/1/2016
105.752083
12/1/2016
111.392426
1/1/2017
116.711029
2/1/2017
131.753159
3/1/2017
138.767197
4/1/2017
138.757538
5/1/2017
147.557281
6/1/2017
139.689148
7/1/2017
144.257507
8/1/2017
159.068329
9/1/2017
150.072464
10/1/2017
164.600632
11/1/2017
167.336838
12/1/2017
165.378021
1/1/2018
163.618988
2/1/2018
174.065674
3/1/2018
164.629501
4/1/2018
162.15683
5/1/2018
183.361038...
1. Consider a stock with the following return information for 2015-2020 Year Return 2015 25% 2016 ...
1. Consider a stock with the following return information for
2015-2020
Year Return
2015 25%
2016 -15%
2017 3%
2018 41%
2019 -6%
2020 12%
Find the following for your sample of returns: Average Return,
Variance, and Standard Deviation.
2. Jamie’s portfolio consists of $15,000 in Microsoft stock and
$45,000 in Coca Cola. Microsoft has an expected return of 19%
annually with a standard deviation of 42%. Coca Cola has an
expected return of 10% annually with a standard deviation...
Given the following information: Expected return on Stock A .15 (15%) Standard deviation of return 0.3...
Given the following
information:
Expected return on Stock A
.15 (15%)
Standard deviation of return
0.3
Expected return on Stock B
.18 (18%)
Standard deviation of return
0.4
Correlation coefficient of the returns
on Stock A and Stock B
0.75
a. What are the expected returns and
standard deviations of the following
portfolios?
1. 100 percent of funds invested in
Stock A
2. 100 percent of funds invested in Stock B
3. 50 percent of funds invested in each stock?...
Given the following information: Expected return on Stock A .15 (15%) Standard deviation of return 0.3...
Given the following information:
Expected return on Stock A .15 (15%)
Standard deviation of return 0.3
Expected return on Stock B .18 (18%)
Standard deviation of return 0.4
Correlation coefficient of the returns on Stock A and Stock B
0.75
a. What are the expected returns and standard deviations of the
following portfolios?
1. 100 percent of funds invested in Stock A
2. 100 percent of funds invested in Stock B
3. 50 percent of funds invested in each stock?...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- “Triangle Guessing” game in Python The program accepts the lengths of three (3) sides of a...
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
- Consider a buffer system consisting of Benzoic acid (pKa = 4.20) and sodium benzoate, a) Would...
- Decision Variables S T Minimize 1.8S + 2.20T Subject to: Potassium 5S + 8T >= 200...
- A neurologist needs to counsel a stroke victim and her husband about possible outcomes, treatment options,...
- Case Study: Personal Beliefs in the Workplace Don Shakow was a prominent professional who worked in...
- 1: Competency framework usage is the modern best practice in management. What is meant by competency...
ADVERTISEMENT