Consider a stock which realized the following historical return over the last three years: -6% in 2020, 4% i What is the standard deviaition of returns over these three years? 6.98% 1.46% 6.08% 8.54%
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- ) 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 ProStocks C and F have the following historical returns:Year return (HPY) of C return (HPY) of F2016 −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 i. Calculate the geometric rate of return for each stock during the 5-year period. ii. Calculate the standard deviation of returns for each stock. iii. Calculate the coefficient of variation for each stock. iv. If you are a risk-averse investor then, assuming these are your only choices, discusswhether you would prefer to hold Stock C or Stock F.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?
- 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.(a) Stocks A and market have the following estimated retuns: RA RM year 2018 -18% -24% 2019 44% 24% 2020 -22% -4% 2021 22% 8% 2022 34% 56% Required to (1)Calculate the expected rate of return for stock A and Market during the 5-year period. (ii) Now calculate the total risk of stock A and MarketWhat is the volatility of a certain stock index from 2019 to 2022? The return for each year is given by: 4,30%, 10,75%, 2,05%, and 12,70%. Calculate the average return over the four-year period. Then, determine the volatility (standard deviation) of the stock index returns.
- Below are the annual returns of the stock A, B, C and D and the market portfolio for the period 2018-2022. Find the expected return and standard deviation of the stock A, B, C, D and the market Year Prob. Asset A Asset B Asset C Asset D Market 2018 0,20 11,00 9,00 12,00 15,00 14,00 2019 0,25 13,00 11,00 15,00 13,00 12,00 2020 0,10 9,00 8,00 11,00 10,00 9,00 2021 0,20 12,00 12,00 11,00 13,00 12,00 2022 0,25 15,00 10,00 9,00 12,00 13,00Stocks A and B have the following historical returns: Year 2016 2017 2018 39.90 2019 (9.70) 2020 20.05 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: 11.23 % Stock B: 11.23 % 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. Portfolio Stock A's Returns, ra (18.60%) 34.25 14.75 (1.00) 26.75 CV Stock A Year 2016 Ⓡ 2017 % 2018 2019 2020 -16.55 27.33 Stock B's Returns, ra (14.50% ) 20.40 27.33 › › -5.35 23.40 What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % % 11.23 c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Stock B Stock A Portfolio %…Given the information in the table below, what is the covariance between the return series of stock A and B. Round your answer! A B Year Past Returns Past Return 2017 20 16 2018 2 12 2019 -2 9 ER] 6.67 11.33 STD 11.72 3.51 W 50.00% 50.00% PAB 0.9638 None of the answers is correct 55.24 50.33 33.12 39.65
- Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (%) T-Bill Return (%) 2016 13.0 0.2 2017 21.0 0.8 2018 -6.2 1.8 2019 29.8 2.1 2020 20.6 0.4 Required: What was the risk premium on common stock in each year? What was the average risk premium? What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.)-- expressed in % (NOTE: 11.31% is incorrect)Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (%) T-Bill Return (%) 2016 13.0 0.2 2017 21.0 0.8 2018 -6.2 1.8 2019 29.8 2.1 2020 20.6 0.4 Required: What was the risk premium on common stock in each year? What was the average risk premium? What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.)The following information is for the next three problems.. Over the last four years ending July 1, the 1-year holding periodtotal returns (i.e., annual returns) for Netflix common stock (ticker symbol NFLX) were:2020: 51.36% 2021: 5.87% 2022: -56.55% 2023: 100.11%2. Calculate the arithmetic average annual return.3. Calculate the geometric average annual return.4. Calculate the volatility (standard deviation) of the annual returns.