Question
In: Math
The following table shows the annual returns (in percent) and summary measures for a sample of...
The following table shows the annual returns (in percent) and summary measures for a sample of returns from the Vanguard Energy Fund and the Vanguard Health Care Fund from 2012 through 2016.
| Year | Energy (%) | Health Care (%) |
| 2012 | 44.6 | 15.41 |
| 2013 | 19.68 | 10.87 |
| 2014 | 37 | 10.43 |
| 2015 | -42.87 | -18.45 |
| 2016 | 28.36 | 20.96 |
If the risk-free rate is 3%, using mean-variance analysis, which fund performed better, and why?
| a. |
The Energy Fund performed better, because its Sharpe Ratio was higher. |
|
| b. |
The Health Care Fund performed better, because its Sharpe Ratio was lower. |
|
| c. |
The Energy Fund performed better, because its Sharpe Ratio was lower. |
|
| d. |
The Health Care Fund performed better, because its Sharpe Ratio was higher. |
Solutions
milcah answered 1 year agoRelated Solutions
The following table shows a portion of the monthly returns data (in percent) for 2010–2016 for...
The following table shows a portion of the monthly returns data
(in percent) for 2010–2016 for two of Vanguard’s mutual funds: the
Vanguard Energy Fund and the Vanguard Healthcare Fund. [You may
find it useful to reference the t table.]
Date
Energy
Healthcare
Jan-10
-4.89
-0.11
Feb-10
1.6
0.54
Mar-10
2.27
1.37
Apr-10
2.99
-3.84
May-10
-11.6
-5.16
Jun-10
-5.77
-0.52
Jul-10
8.69
1.52
Aug-10
-6.02
-1.08
Sep-10
10.2
8.24
Oct-10
3.85
2.3
Nov-10
2.82
-2.5
Dec-10
5.55
2
Jan-16...
The following table shows a portion of the monthly returns data (in percent) for 2010–2016 for...
The following table shows a portion of the monthly returns data
(in percent) for 2010–2016 for two of Vanguard’s mutual funds: the
Vanguard Energy Fund and the Vanguard Healthcare Fund. [You may
find it useful to reference the t table.] Date Energy Healthcare
Jan-10 −4.86 −0.08 Feb-10 1.90 0.56 ⋮ ⋮ ⋮ Dec-16 0.10 −5.30 SOURCE:
www.finance.yahoo.com. Click here for the Excel Data File a.
Calculate the sample correlation coefficient rxy. (Round
intermediate calculations to at least 4 decimal places...
The following table shows the past annual returns for Stock A and Stock B, please find...
The following table shows the past annual returns for Stock A
and Stock B, please find the expected return, standard deviation
and coefficient of variation for Stock A, Stock B and a Portfolio
that puts 40% weight on Stock A and 60% weight on Stock B.
Year Stock A Returns Stock B Returns
2005 10.30% 10.71%
2006 -0.10% 25.00%
2007 23.30% 0.38%
2008 2.20% 26.20%
2009 14.00% 11.52%
EXCEL FILE ONLY Refer to the table below. The table below shows the annual returns (in...
EXCEL FILE ONLY
Refer to the table below. The table below shows the annual
returns (in percentages) for 2 major market indices. For each
index, calculate the arithmetic mean return and the geometric mean
return of full-year returns from 2005-2015. What is the
relationship between the arithmetic and geometric mean returns?
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Nasdaq Composite Index
1.37
8.59
50.0
-31.5
-21.1
-39.3
85.6
39.6
21.6
22.7
39.9
Dow Jones Industrial Average...
The following table shows the annual returns over a six year period for the S&P 500...
The following table shows the annual
returns over a six year period for the S&P 500 market index and
MCH, Inc. Assume that the historical information represents a
population. Use this data to calculate the correlation between both
sets of security returns. Discuss your findings.
Year
S&P
500
MCH,
Inc.
2013
0.15
0.37
2014
0.13
0.09
2015
0.14
-0.11
2016
-0.09
0.08
2017
0.12
0.11
2018
0.09
0.04
Please show me each step. Thank you
The following table shows the annual returns over a six year period for the S&P 500...
The following table shows the annual
returns over a six year period for the S&P 500 market index and
MCH, Inc. Assume that the historical information represents a
population. Use this data to calculate the correlation between both
sets of security returns. Discuss your findings.
Year
S&P
500
MCH,
Inc.
2013
0.15
0.37
2014
0.13
0.09
2015
0.14
-0.11
2016
-0.09
0.08
2017
0.12
0.11
2018
0.09
0.04
The accompanying table shows the annual salaries, in thousands of dollars, earned by a sample of...
The accompanying table shows the annual salaries, in thousands
of dollars, earned by a sample of individuals who graduated with
MBAs in the years 2012 and 2013. Perform a hypothesis test using α
equals= 0.05 to determine if the median salary for 2012 MBA
graduates is lower than 2013 MBA graduates.
Salaries (in thousands of dollars) for 2012 MBA graduates
92.6
66.1
60.6
85.5
92.8
44.7
84.4
81.1
44.2
94.3
66.6
61.6
94.6
81.6
Salaries (in thousands of dollars) for...
Table 3 (below) shows annual returns for the S&P 500 for the years 2000-2016: Table 3:...
Table 3 (below) shows annual returns for the S&P 500 for
the years 2000-2016:
Table 3: Annual Returns
Year
Returns
2000
-9.0%
2001
-11.9%
2002
-22.0%
2003
28.4%
2004
10.7%
2005
4.8%
2006
15.6%
2007
5.5%
2008
-36.6%
2009
25.9%
2010
14.8%
2011
2.1%
2012
15.9%
2013
32.2%
2014
13.5%
2015
1.4%
2016
11.7%
Calculate:
The cumulative return over the 17 years;
The average annual return;
The standard deviation;
The Sharpe Ratio (assuming a risk free rate of 2.3% on...
Table 2 shows regressions of the standard deviation and Sharpe ratio of household portfolio annual returns...
Table 2 shows regressions of the standard deviation and Sharpe
ratio of household portfolio annual returns for different brackets
of the distribution of net wealth in Sweden between 1999 and 2007
(standard errors are not reported). The reported Sharpe ratio of a
household portfolio is equal to the expected return of the
portfolio divided by its standard deviation. The Sharpe ratio is
used to measure performance in relation to risk taken. For example,
when comparing two portfolios, the one with...
Table 2 shows regressions of the standard deviation and Sharpe ratio of household portfolio annual returns...
Table 2 shows regressions of the standard deviation and Sharpe
ratio of household portfolio annual returns for different brackets
of the distribution of net wealth in Sweden between 1999 and 2007
(standard errors are not reported). The reported Sharpe ratio of a
household portfolio is equal to the expected return of the
portfolio divided by its standard deviation. The Sharpe ratio is
used to measure performance in relation to risk taken. For example,
when comparing two portfolios, the one with...
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