A stock investment generated the following annual (total) returns over these 3 years: • 2015: 20% • 2016: 10% ⚫ 2017: -50% What was the geometric average return over the 3 year Period? (Answer to the nearest 0.01%)
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- The realized return of Talkie share and Stock M for the past 5 years are detailed below:Year Talkie Stock M2020 15% 30%2019 5% 7%2018 -5% -3%2017 2% -8%2016 9% 20% Compute the arithmetic mean and standard deviation of returns over the past 5 years for each stock?Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (%) T-Bill Return (%) 2013 35.90 0.21 2014 15.20 0.21 2015 -5.10 0.21 2016 16.90 0.08 2017 25.90 0.10 a. What was the risk premium on common stock in each year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Year Risk Premium 2013 % 2014 % 2015 % 2016 % 2017 % b. What was the average risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)The following are the calendar year rates of return for a S&P 500 ETF (Ticker: IVV) between 2013 and 2017. Year IVV 2013 29.60% 2014 11.39% 2015 -0.73% 2016 9.54% 2017 19.42% What is the geometric mean rate of return? Round to the nearest 0.01, in percentage terms.
- Consider a stock which realized the following historical return over the last three years: -6% in 2020, 4% in 2021, and 11% in 2022. What is the standard deviaition of returns over these three years? 6.98% 1.46% 6.08% O 8.54%Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2016 (23.80 %) (17.70 %) 2017 22.50 24.50 2018 14.25 24.00 2019 (2.25 ) (9.70 ) 2020 25.00 14.60 Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: % Stock B: %Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2016 (21.10 %) (14.70 %) 2017 23.50 28.50 2018 13.00 29.90 2019 (4.25 ) (10.40 ) 2020 27.75 5.60 Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: % Stock B: % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign. Year Portfolio 2016 % 2017 % 2018 % 2019 % 2020 % What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Stock A Stock B…
- Given the following annual returns for Fort Corporation, Smith Industries and the market. Fort's Smith's Market Year Rate of Return (%) Rate of Return (%) Rate of Return (%) 2015 6 5 -3 2016 10 15 8 2017 11 15 20 2018 10 10 10 2019 13 10 5 Calculate the mean return of a portfolio formed from Fort stock and the Market (25% invested in Fort). 8% a. 8.5% 10.75% с. 40% d.Tomorrow Investments Ltd. just paid a divided of K2.00 in 2019 and the dividend is expected to grow at 15% for the next 3years and thereafter decline to 10%. The required rate of return on the stock is 18%. Find the value of the stock.?) The table below shows the annual returns for a stock over the last four years. Year Return 2018 -12% 2019 15% 2020 27% 2021 -34% a. What is the stock's average return over the 2018-2021 period? b. What is the standard deviation of returns over this same period? MacBook Pro
- During the last four years, you owned two stocks that have had the following annual rates of return. Year KEX KW 2014 0.13 -0.08 2015 0.05 0.21 2016 0.07 0.06 2017 0.09 0.15 Compute the arithmetic mean annual return for EACH stock Compute the standard deviation of the annual rate of return for EACH stock Taking the results of (i) and (ii) into consideration, which stock is preferable? Why? Compute the geometric mean annual return for EACH stockUse the table for the question(s) below. Consider the following realized annual returns: Index Stock A Year End Realized. Realized Return Return 23.6% 46.3% 24.7% 26.7% 30.5% 86.9% 9.0% 23.1% -2.0% 0.2% -17.3% -3.2% -24.3% -27.0% 32.2% 27.9% 4.4% -5.1% 7.4% -11.3% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Suppose that you want to use the 10-year historical average return on Stock A to forecast the expected future return on Stock A. The 95% confidence interval for your estimate of the expect return is closest to: O 6.5% to 26.3%. O-15.0% to 47.9%. -4.5% to 37.4%. 13.2% to 19.5%.cks A and B have the following historical returns: Year 2016 2017 2018 2019 2020 Stock A's Returns, ra (17.90%) 30.00 13.25 (3.50) 29.75 Stock B's Returns, ra (14.20%) 22.70 a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A 39.50 (7.10) 10.70 Stock B b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock 8. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign. Year 2016 2017 2018 2019 2020 What would the average return on the portfolio have been during this period? Round your answer to two decimal places. Portfolio CV e. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? ele Calculate the standard deviation of returns for each stock and for the portfolio. Hound your answers to two decimal places.…