Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 30% 20% Normal 50% 12% -5% Slow 15% 4% 8% Recession 15% -10% 10% Calculate the expected return for stock A. (Enter percentages as decimals and round to 4 decimals)
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- Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 30% 20% Normal 50% 12% -5% Slow 15% 4% 8% Recession 15% -10% 10% Calculate the standard deviation of stock B. (Enter percentages as decimals and round to 4 decimals)Consider the three stocks in the following table. Pt represents price at time t, Qt represents shares outstanding at time t. Stock C splits two for one in the second period from t=1 to t=2. Calculate the rate of return on a price-weighted index consisting of the three stocks for the first period from t=0 to t=1. Answer in percentage. Stock P0 Q0 P1 Q1 P2 Q2 A 70 475 75 475 75 475 B 45 850 40 850 40 850 C 50 300 60 300 30 600 a. 0.00% b. 2.49% c. 6.06% d. 8.95% e. 1.30%Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 30% 20% Normal 50% 12% -5% Slow 15% 4% 8% Recession 15% -10% 10% Calculate the correlation (A,B). (Enter percentages as decimals and round to 4 decimals)
- Directions: Compute the returns, average of returns and standard deviation of the following stocks and the PSEI. 1. 2. AGI SM Year Stock Return x x (x--x)² Year Stock Return x x (x-x)² Price Price 30/1/2014 27.100 30/1/2014 704.500 28/2/2014 30.000 28/2/2014 694.000 31/3/2014 28.500 31/3/2014 705.000 30/4/2014 31.150 30/4/2014 725.000 30/5/2014 29.650 30/5/2014 786.000 30/6/2014 29.100 30/6/2014 816.000 31/7/2014 26.350 31/7/2014 797.000 29/8/2014 24.600 29/8/2014 772.000 30/9/2014 26.000 30/9/2014 803.500 31/10/2014 25.300 31/10/2014 783.500 28/11/2014 24.800 28/11/2014 804.500 29/12/2014 22.550 29/12/2014 815.000 PSEI Year Stock Return x X (x-X)? 30/6/2014 6,844.31 Price 31/7/2014 6,864.82 30/1/2014 6,041.19 29/8/2014 7,050.89 3. 28/2/2014 6,424.99 30/9/2014 7,283.07 31/10/2014 7,215.73 31/3/2014 6,428.71 28/11/2014 7,294.38 30/4/2014 6,707.91 29/12/2014 7,230.57 30/5/2014 6,647.65Use the portion of the stock table shown below to answer the questions that follow. Round dollar amounts to the nearest cent when necessary. YTD %CHG 52- HI Week LO STOCK DIV YLD % VOL 100s CLOSE NET CHG 4.8 32.63 16.29 A1 0.99 3.7 795 26.59 0.43 3 46.98 31.94 B1 ... 725 38.76 –0.13 (i) If you own 610 shares of A1, what dividend do you receive this year? (ii) What was the price of a share of stock B1 at the close of the trading day yesterday?Following is information for two stocks: Investment r σ Stock X 8% 10% Stock Y 24% 36% Which stock has the greater relative risk? (show the computation of the relative risk for X & Y.)
- The table below describes the price per share (P) and the number of shares outstanding (Q) at time = 0 and then again at time = 1. The subscripts indicate which time (t = 0 or 1) that the information applies to. Stock A Stock B Po 90 50 Qo 100 200 P₁ 95 45 Q₁ 100 200 (A) What is the "market cap" for Stock A at time 0? 9000 (B) Assume you have an index that includes only these 2 stocks. What is the value-weighted rate of return for the index from time O to time 1? Choose the answer closest to the correct number. -0.026 (C) Assume someone asked you calculate the equal-weighted return for a portfolio that included these 2 stocks. What is the equal-weighted return from time 0 to time 1? 0.055Consider the three stocks in the following table. Pt represents price at time t, and ot represents shares outstanding at time t. Stock C splits two for one in the last period. Stock Po P1 21 75 65 75 75 75 55 150 50 150 50 150 110 150 115 150 60 300 A B с с 20 75 P2 a. Rate of return b. Rate of return Required: Calculate the first-period rates of return on the following indexes of the three stocks (t=0 to t= 1): Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a. A market-value-weighted index. b. An equally weighted index. 22 % %Consider the following probability distribution for stocks A and B: O 8.97%: 1.05% O 8.97%; 2.03% O 10.07%; 3.01% O 10.07%; 1.05% State Probability A S12345 Return on StockReturn on Stock B 0.10 0.20 0.20 0.30 0.20 10% 13% 12% 14% 15% 8% 7% 6% 9% 8 % The expected rate of return and standard deviation of the global minimum variance portfolio, G, are and respectively.
- Consider the three stocks in the following table. Pt represents price at time t, and ot represents shares outstanding at time t. Stock C splits two for one in the last period. Stock Po A 50 B 45 с 90 120 20 P1 a. Rate of return b. Rate of return 21 60 60 60 120 35 120 95 120 02 60 60 35 120 50 240 P2 Required: Calculate the first-period rates of return on the following indexes of the three stocks (t = 0 to t = 1): Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a. A market-value-weighted index. b. An equally weighted index. % %You are given the returns for the following three stocks: Year 1 2 3 4 5 Stock A 9.00% 9.00 9.00 9.00 9.00 Stock B 9.00% Arithmetic return Standard deviation Geometric return 14.00 6.00 4.00 12.00 Stock C -24.00% 37.00 16.00 9.00 7.00 Calculate the arithmetic return, geometric return, and standard deviation for each stock. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. > Answer is complete but not entirely correct. Stock B 9.00 13.60 Stock A 9.00 % 0.00 % 1.76 X % % % 3.70 X % Stock C 9.00 18.38 1.10 % % %Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. PO 00 P1 01 P2 02 A 82 100 87 100 87 100 B 42 200 37 200 37 200 C 84 200 94 200 47 400 Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return % b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor c. Calculate the rate of return of the price-weighted index for the second period (t = 1 to t = 2).