Question
In: Finance
Suppose you are given the following end of year stock price data for Random Inc. stock....
Suppose you are given the following end of year stock price data for Random Inc. stock. Assume the returns are normally distributed, calculate the minimum value that an investor eared during any given year of the sample. (Enter percentages as decimals and round to 4 decimals).
| Year | Price |
| 2005 | 43.65 |
| 2006 | 44.01 |
| 2007 | 45.77 |
| 2008 | 53.04 |
| 2009 | 45.67 |
| 2010 | 59.05 |
| 2011 | 46.88 |
| 2012 | 49.24 |
| 2013 | 43.99 |
| 2014 | 42.67 |
| 2015 | 48.14 |
Solutions
Expert Solution
The Minimum return that a
person will receive in any year is 44.5882 with 5% level of
significance.
jeff jeffy answered 1 year agoRelated Solutions
Suppose you are given the following end of year stock price data for Random Inc. stock....
Suppose you are given the following end of year stock price data
for Random Inc. stock. Assume the returns are normally distributed,
calculate the probability that an investor will lose more than -3%
in a year, Prob(Ret<-3%). (Enter percentages as decimals and
round to 4 decimals). Year Price 2005 43.65 2006 44.01 2007 45.77
2008 53.04 2009 45.67 2010 59.05 2011 46.88 2012 49.24 2013 43.99
2014 42.67 2015 48.14
Suppose you are given the following end of year stock price data for Random Inc. stock....
Suppose you are given the following end of year stock price data
for Random Inc. stock. Assume the returns are normally distributed,
calculate the probability that an investor will lose more than -3%
in a year, Prob(Ret<-3%). (Enter percentages as decimals and
round to 4 decimals). Year Price 2005 43.65 2006 44.01 2007 45.77
2008 53.04 2009 45.67 2010 59.05 2011 46.88 2012 49.24 2013 43.99
2014 42.67 2015 48.14
Suppose you are given the following end of year stock price data for Random Inc. stock....
Suppose you are given the following end of year stock price data
for Random Inc. stock. Assume the returns are normally distributed,
calculate the probability that an investor will earn more than 1.5%
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decimals and round to 4 decimals). Year Price 2005 50.25 2006 66.49
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2013 86.39 2014 76.35 2015 85.47 2016 86.07
Suppose that you are given the following information about the stock price/dividends for a company: Year...
Suppose that you are given the following information about the
stock price/dividends for a company:
Year
Beginning of Year Price
Dividend Paid at Year-End
2016
$80
$3
2017
$85
$4
2018
$78
$2
2019
$82
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Use the end-of-year stock price data in the popup window, (data below) to answer the following...
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return for the entire three-year period using your annual rates of
return from part a. (Note: you may assume that neither firm pays
any dividends.)
c. Compute a three-year rate of...
You are given the following data Year HPR of Stock A &nb
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Year
HPR of Stock A HPR of Stock B
HPR of Stock C
2017
12%
16%
12%
2018
14%
14%
14%
2019
16%
12%
16%
(1) Calculate expected rate of return for each stock
(2) Calculate standard deviation for each stock
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Two stocks has the following year-end stock prices and dividends: Stock 1 Stock 2 Year Price...
Two stocks has the following year-end stock prices and
dividends:
Stock 1
Stock 2
Year
Price
Dividend
Price
Dividend
1
$70
$150
2
$75
$1
$163
$2
3
$74
$1
$156
$2
4
$80
$2
$173
$1
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You are given
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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
=
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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...
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