- Calculate the average rate of return for each stock during the period 2x15 through 2x19. Assume tha someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year from 2x15 through 2x19? What would have been the average return on the portfolio during that period? . Calculate the standard deviation of returns for each stock. Assume the risk-free rate during this time was 3.5%. What are the Sharpe ratios for Stocks A and B ove this time period using their average returns?

- Calculate the average rate of return for each stock during the period 2x15 through 2x19. Assume tha someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year from 2x15 through 2x19? What would have been the average return on the portfolio during that period? . Calculate the standard deviation of returns for each stock. Assume the risk-free rate during this time was 3.5%. What are the Sharpe ratios for Stocks A and B ove this time period using their average returns?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 1P

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Your stock's returns for the past four years are as follows. t Return t1 19.79% t2 -0.58% t3 8.55% t4 4.68% Compute the geometric average return for this stock. Please enter your answer as a PERCENT rounded to 2 decimal places.
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I. 1. Consider stocks A and B with the following past returns: Month 1 3 4 A 4% 6% 8% 2% B 10% 8% 4% 6% The contribution of stock B to the standard deviation of a portfolio composed of 30% A and 70% B equals: A. 1,43%; B. 0,41%; C. 1,41%; D. 6,4%; E...%
Stocks C and F have the following historical returns: Year return (HPY) of C return (HPY) of F 2016 −18.00% −14.50% 2017 33.00% 21.80% 2018 15.00 % 30.50% 2019 −0.50% −7.60% 2020 27.00% 26.30% Required Calculate the geometric rate of return for each stock during the 5-year period. Calculate the standard deviation of returns for each stock. Calculate the coefficient of variation for each stock. If you are a risk-averse investor then, assuming these are your only choices, discuss whether you would prefer to hold Stock C or Stock F.
Stocks A and B have the following historical returns: Year Stock A return Stock B return 2004 (24.25%) 5.5% 2005 18.5% 26.73% 2006 38.67% 48.25% 2007 14.33% (4.5%) 2008 39.13% 43.86% Calculate the standard deviation of returns for each stock and for the portfolio.
Annual returns of Stock in the past 5 years are presented in the following table: Stock B O 5.18% 8.56% Compute the standard deviation of the annual return of Stock B. O 2.4% Year 1 -0.02 4.24% Year 2 0.08 Year 3 0.04 Year 4 0.06 Year 5 -0.04
I. 1. Consider stocks A and B with the following past returns: Month 1 3 4 A 4% 6% 8% 2% B 10% 8% 4% 6% The contribution of stock B to the standard deviation of a portfolio composed of 30% A and 70% B equals: A. 1,43%; B. 0,41%; C. 1,41%; D. 6,4%; E...% 2. The table below presents the price of stock A and the points of a market index over the last four months. Month 1 2 3 4 А 100 110 108 103 M 1120 1150 1200 1190 a. The holding period logarithmic return of M equals: A. 2,95%; B. 6,06%; C. 5,5%; D. ...% b. The beta coefficient of stock A equals: A. 1,24; B. 1,13; C. 1,1; D. . c. The estimated alpha coefficient from the market model equals d. The coefficient of determination from the market model equals % ......
Stocks A and B have the following historical returns: Stock A's Returns (24.25%) 18.50 38.67 14.33 39.13 Year 2015 2016 2017 2018 2019 Assume the risk-free rate during this time was 3.5%. What are the Sharpe ratios for Stocks A and B and the portfolio over this time period using their average returns? Answers: a) Sharpe ratio for Stock A b) Sharpe ratio for Stock B 0.5332 0.8839 c) Sharpe ratio for Portfolio AB Stock B's Returns 5.50% 26.73 48.25 (4.50) 43.86 Note: enter your answers with 4 decimal places