In: Finance

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.

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 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 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 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 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 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 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 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 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 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...

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