Question
In: Finance
You are given the following information concerning a stock and the market: Returns Year Market Stock...
You are given the following information concerning a stock and the market:
| Returns | ||||||
| Year | Market | Stock | ||||
| 2011 | 14 | % | 26 | % | ||
| 2012 | 10 | 10 | ||||
| 2013 | 20 | 3 | ||||
| 2014 | −15 | −31 | ||||
| 2015 | 35 | 16 | ||||
| 2016 | 15 | 18 | ||||
a. Calculate the average return and standard deviation for the market and the stock.
b. Calculate the correlation between the stock and the market, as well as the stock’s beta.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You are given the following information concerning options on a particular stock: Stock price =...
You are given
the following information concerning options on a particular
stock:
Stock
price
=
$62
Exercise
price
=
$60
Risk-free
rate
=
5% per year,
compounded continuously
Maturity
=
3 months
Standard
deviation
=
45% per
year
a.
What is the intrinsic
value of each option? (Leave no cells blank - be certain to
enter "0" wherever required. Do not round intermediate
calculations.)
Value
Call
option
$
Put
option
$
b.
What is the time...
You are given the following information concerning options on a particular stock: Stock price =...
You are given the following information concerning options on a
particular stock:
Stock price
=
$76
Exercise price
=
$75
Risk-free rate
=
6% per year, compounded continuously
Maturity
=
6 months
Standard deviation
=
31% per year
a.
What is the intrinsic value of each option? (Leave no
cells blank - be certain to enter "0" wherever required. Do not
round intermediate calculations.)
Value
Call option
$
Put option
$
b.
What is the time...
You are given the following information concerning options on a particular stock: Stock price =...
You are given the following information concerning options on a
particular stock:
Stock price
=
$65
Exercise price
=
$60
Risk-free rate
=
4% per year, compounded continuously
Maturity
=
3 months
Standard deviation
=
42% per year
a.
What is the intrinsic value of each option? (Leave no
cells blank - be certain to enter "0" wherever required. Do not
round intermediate calculations.)
b.
What is the time value of each option? (Do not round
intermediate calculations...
You are given the following information concerning the tradesmade on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain
to enter "0" wherever required. A negative value should be
indicated by a minus sign. Do not round intermediate calculations.
Round your answers to the nearest whole dollar.)PriceVolume$59.9659.973,50059.953,00059.943,40058.953,55060.234,30060.144,600
You are given the following information concerning the share price and returns for Cubic Technologies Ltd:...
You are given the following information concerning the share
price and returns for Cubic Technologies Ltd:
Day
Share Price
Return
Day
Share Price
Return
1
230
7
233
-0.104
2
250
0.087
8
221
-0.052
3
232
-0.072
9
201
-0.090
4
241
0.039
10
218
0.085
5
247
0.025
11
219
0.005
6
260
0.053
12
227
0.037
1.1Determine and describe the trading behaviour of an investor
who follows the Dow Theory which recommends investing in securities
when the...
You are given the following information concerning options on a particular stock: Stock price = $62...
You are given the following information concerning options on a
particular stock:
Stock price = $62
Exercise price = $60
Risk-free rate = 5% per year, compounded continuously
Maturity = 3 months
Standard deviation = 45% per year
What is the time value of each option?
You are given the following information concerning options on a particular stock: Stock price = $61...
You are given the following information concerning options on a
particular stock: Stock price = $61 Exercise price = $60 Risk-free
rate = 4% per year, compounded continuously Maturity = 3 months
Standard deviation = 46% per year
What is the time value of each option? (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
Call option? and Put option?
You are given the returns for the following three stocks: Year Stock A Stock B Stock...
You are given the returns for the following three stocks: Year
Stock A Stock B Stock C 1 9 % 9 % -24 % 2 9 14 37 3 9 6 16 4 9 4 9
5 9 12 7 Calculate the arithmetic return, geometric return, and
standard deviation for each stock. (Do not round intermediate
calculations. Enter your answers as a percent rounded to 2 decimal
places.)
You are given the returns for the following three stocks: Year Stock A Stock B Stock...
You are given the returns for the following three stocks:
Year
Stock A
Stock B
Stock C
1
14%
15%
-20%
2
14%
20%
35%
3
14%
13%
35%
4
14%
8%
15%
5
14%
14%
5%
Calculate the arithmetic return, geometric return, and standard
deviation for each stock. (Do not round intermediate calculations.
Enter your answers as a percent rounded to 2 decimal places. Omit
the "%" sign in your response.)
You are given the returns for the following three stocks: Year Stock A Stock B Stock...
You are given the returns for the following three stocks:
Year
Stock A
Stock B
Stock C
1
6
%
3
%
-21
%
2
6
6
20
3
6
8
16
4
6
7
9
5
6
6
6
Calculate the arithmetic return, geometric return, and standard
deviation for each stock.
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