The S&P 500 stock price closed at $98, $103, $107, $102, $111 over five successive weeks....

The S&P 500 stock price closed at $98, $103, $107, $102, $111 over five successive weeks. What is the weekly standard deviation of the stock price? What is the weekly standard deviation of the returns assuming no dividend were paid?

the right answer are $4.97, 5.71%

please show me the steps.

Solutions

Expert Solution

jeff jeffy answered 10 months ago

Next > < Previous

Related Solutions

We are living in interesting times. Over the past 2 weeks, the S&P 500 Index has dropped...

We are living in interesting times. Over the past 2 weeks, the S&P 500 Index has dropped over 10%. At the same time, the short-end of the U.S. Treasury yield curve is approaching zero and long-dated yields are at all-time lows. Please evaluate the dynamics of this situation. If the risk-free rate is falling, why aren’t asset prices increasing? How would you describe the flow of funds and the direction of causality? What does CAPM say about equity beta (β) in the current environment? What predictions...

The S&P 500, or simply the S&P, is a stock market index that measures the stock...

The S&P 500, or simply the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. define an adequate investment strategy, and select the assets they would invest to start with. -the potential customer profile specifications (SAP 500), -the portfolio objectives -the investment policies (strategic allocation) -The choice and justification of a benchmark -a trial portfolio based on the team investment guidelines -a brief evaluation on each...

The S&P 500 and Nohr Corp had the following returns over the past five years Year ...

The S&P 500 and Nohr Corp had the following returns over the past five years Year S&P 500 Nohr .12 .23 .01 -.05 .18 .20 .09 .12 .10 .20 a. What was the mean AND standard deviation of returns (population version) for Nohr for the 5 years? b. What was the beta of Nohr relative to the S&P 500? c. What was the geometric mean return for Nohr for the 5 years?

YBM’s stock price S is $102 today. — After six months, the stock price can either...

YBM’s stock price S is $102 today. — After six months, the stock price can either go up to $115.63212672, or go down to $93.52995844. — Options mature after T = 6 months and have an exercise price of K = $105. — The continuously compounded risk-free interest rate r is 5 percent per year. Given the above data, suppose that a trader quotes a put price of $5. Then the arbitrage profit that you can make today by trading...

YBM’s stock price S is $102 today. — After six months, the stock price can either...

YBM’s stock price S is $102 today. — After six months, the stock price can either go up to $115.63212672, or go down to $93.52995844. — Options mature after T = 6 months and have an exercise price of K = $105. — The continuously compounded risk-free interest rate r is 5 percent per year. Given the above data, the hedge ratio and the put option’s value are given by: Group of answer choices 0.5190 for the hedge ratio and...

YBM’s stock price S is $102 today. — After six months, the stock price can either...

YBM’s stock price S is $102 today. — After six months, the stock price can either go up to $115.63212672, or go down to $93.52995844. — Options mature after T = 6 months and have an exercise price of K = $105. — The continuously compounded risk-free interest rate r is 5 percent per year. Given the above data, suppose that a trader quotes a call price of $6. Then the arbitrage profit that you can make today by trading...

Assume the average stock price for companies making up the S&P 500 at certain time period...

Assume the average stock price for companies making up the S&P 500 at certain time period is $40, and the standard deviation is $10. Assume the stock prices are normally distributed. Assume the stock prices are normally distributed. From Table 1: Cumulative Probabilities for the Standard Normal Distribution, what is the probability company will have a stock price of at least $50? 0.9332 0.8413 0.1583 0.0068 None of the above 2. Let Z be the standard normal random variable. What...

Because of the outbreak of Covid-19, the S&P 500 stock index fell over 30% from its...

Because of the outbreak of Covid-19, the S&P 500 stock index fell over 30% from its recent high level. At the same time, the volatility index of the S&P 500 (a measure of the market's expectation of 30-day forward-looking volatility) spiked from 14 to 80. Assume that in December 2019 (before the outbreak of the Covid-19) the expected growth rate of the index was 5%, the discount rate was 10%, and the risk-free rate of return was 3.5%. Also, assume...

(a) The S&P/ASX200 price index opened the year at 5,777 and closed at 6,120 by the...

(a) The S&P/ASX200 price index opened the year at 5,777 and closed at 6,120 by the end of the year. The equivalent accumulation index went from 56,240 to 64,425. What is the annual rate of return on each of these indices? Explain the difference. (b) Using the approach covered in your textbook calculate the geometric average annual rate of return over five years given the following annual rates, year 1 = 5.10%, year 2 = 4.95%, year 3 = 4.83%,...

You are contemplating investments in the stock of Clorox and in the S&P 500 index (a...

You are contemplating investments in the stock of Clorox and in the S&P 500 index (a collection of stocks approximately representing the overall market). The Clorox required return (calculated using the capital asset pricing model or CAPM) is 18%, the Clorox beta is .95, and its bonds are rated A. The standard deviation of returns for Clorox stock is 14%. Its payout ratio is 65% and its sales are expected to grow by 7% during the next year. The S&P...

Subjects