Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A stock had returns of 12%, 6%, 13%, -11%, -2% over the past five years. what is the geometric average for this time period?
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- Year Return The last four years of returns for a stock are as follows: 1 - 3.6% 2 27.6% 3 4 11.9% 4.1% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns?arrow_forwardThe return paΣern on your favorite stock has been 5%, 8%, -12%, 15%, 21% over the last five years. What are your average return and total change in wealth per year over the period? explain this question in detail and give me the complete calculations to understand the sumarrow_forwardIf a stock's P/E ratio is 13.5 at a time when earnings are $3 per year and the dividend payout ratio is 40%, what is the stock's current price? a. $24.30 b. $18.00 c. $22.22 d. $40.50arrow_forward
- A stock had returns of 18.94 percent, 22.58 percent, -15.98 percent, 9.38 percent, and 28.45 percent for the past five years. What is the average return? A) 12.67% B) 19.07% C)6.12% D) 7.19% E) 28%arrow_forwardUsing the data in the following table, calculate the volatility (standard deviation) of a portfolio that is 75% invested in stock A and 25% in stock B.arrow_forwardUse 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%.arrow_forward
- Given the time series of historical stock returns below, what is the standard deviation? (Hint: theexpected return is 4%)Time Period 1 2 3 4 5return (%) 5% -7% 12% 13% -3% a. 7.585%b. 0.79%c. 8.888%d. 2.155%arrow_forwardA stock had returns of 8%, 14%, and 2% for the past three years. Based on these returns, what is the probability that this stock will earn at least 20% in any one given year? A) 0.5% B) 1.0% C)3% D) 5.0% E) 16.0%arrow_forwardA stock had returns of 17.47 percent, -7.03 percent, and 23.78 percent for the past three years. What is the standard deviation of the returns? Multiple Choice 26.49% 12.87% 16.28% 9.46% 2.65%arrow_forward
- 22arrow_forwardUsing the data in the following table, calculate the volatility (standard deviation) of a portfolio that is 60% invested in stock A and 40% in stock B. The volatility of the portfolio is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A Stock B 2010 2011 2012 2013 2014 2015 -10% 19% 4% -3% 5% 12% 19% 39% 24% -8% -8% 35% Print Done Хarrow_forwardThe historical returns data for the past three years for Company A's stock is -6.0%, 15%, 15% and that of the market portfolio is 10%, 10% and 16%. According to the security market line (SML), the Stock A is:A. Over priced B. Under priced C. Correctly pricedD. Need more informationarrow_forward
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