a. Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X's beta coefficient. Do not round intermediate calculations. Round your answer to two decimal places. Beta = b. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for both Stock X and the NYSE. Do not round intermediate calculations. Round your answers to two decimal places.
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- You are analyzing risk and return and CAPM using the historical data provided below (the same as the downloadable file DataQ16.xlsx ). YYYYMM Return(Stk) Return(Mkt) Return(T-bill) 201601 -4.98% -10.18% 0.05% 201602 -2.07% -2.90% 0.06% 201603 11.63% 8.71% 0.06% 201604 0.32% 1.40% 0.07% 201605 9.39% -1.20% 0.09% 201606 1.62% -0.10% 0.09% 201607 5.91% 5.28% 0.09% 201608 8.20% 4.96% 0.08% 201609 5.55% 1.39% 0.09% 201610 -3.38% -1.56% 0.11% 201611 -5.88% -0.63% 0.11% 201612 -2.07% -3.46% 0.12% 201701 7.75% 6.18% 0.14% 201702 1.27% 1.63% 0.14% 201703 7.63% 1.56% 0.09% 201704 9.25% 2.09% 0.09% 201705 10.20% 4.25% 0.08% 201706 4.33% 0.41% 0.09% 201707 12.25% 6.05% 0.11% 201708 4.98% 2.37% 0.11% 201709 2.19% -1.49% 0.09% 201710 4.05% 2.51% 0.09% 201711 13.78%…You are analyzing risk and return and CAPM using the historical data provided below (the same as the downloadable file DataQ16.xlsx ). YYYYMM Return(Stk) Return(Mkt) Return(T-bill) 201601 -4.98% -10.18% 0.05% 201602 -2.07% -2.90% 0.06% 201603 11.63% 8.71% 0.06% 201604 0.32% 1.40% 0.07% 201605 9.39% -1.20% 0.09% 201606 1.62% -0.10% 0.09% 201607 5.91% 5.28% 0.09% 201608 8.20% 4.96% 0.08% 201609 5.55% 1.39% 0.09% 201610 -3.38% -1.56% 0.11% 201611 -5.88% -0.63% 0.11% 201612 -2.07% -3.46% 0.12% 201701 7.75% 6.18% 0.14% 201702 1.27% 1.63% 0.14% 201703 7.63% 1.56% 0.09% 201704 9.25% 2.09% 0.09% 201705 10.20% 4.25% 0.08% 201706 4.33% 0.41% 0.09% 201707 12.25% 6.05% 0.11% 201708 4.98% 2.37% 0.11% 201709 2.19% -1.49% 0.09% 201710 4.05% 2.51% 0.09% 201711 13.78%…You are analyzing risk and return and CAPM using the historical data provided below (the same as the downloadable file DataQ16.xlsx ). YYYYMM Return(Stk) Return(Mkt) Return(T-bill) 201601 -4.98% -10.18% 0.05% 201602 -2.07% -2.90% 0.06% 201603 11.63% 8.71% 0.06% 201604 0.32% 1.40% 0.07% 201605 9.39% -1.20% 0.09% 201606 1.62% -0.10% 0.09% 201607 5.91% 5.28% 0.09% 201608 8.20% 4.96% 0.08% 201609 5.55% 1.39% 0.09% 201610 -3.38% -1.56% 0.11% 201611 -5.88% -0.63% 0.11% 201612 -2.07% -3.46% 0.12% 201701 7.75% 6.18% 0.14% 201702 1.27% 1.63% 0.14% 201703 7.63% 1.56% 0.09% 201704 9.25% 2.09% 0.09% 201705 10.20% 4.25% 0.08% 201706 4.33% 0.41% 0.09% 201707 12.25% 6.05% 0.11% 201708 4.98% 2.37% 0.11% 201709 2.19% -1.49% 0.09% 201710 4.05% 2.51% 0.09% 201711 13.78%…
- use attachment to answer questions This question relates to Diagram 1 from the 9.4 diagrams, which shows the Security Market Line. What is the expected return on the market? Select one: a. 20% b. 10% c. 15% d. 5%The market and Stock J have the following probability distributions: Probability rM rJ 0.3 15.00 % 19.00 % 0.4 10.00 6.00 0.3 18.00 10.00 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Calculate the expected rate of return for the market. Do not round intermediate calculations. Round your answer to two decimal places.fill in the blank %Calculate the expected rate of return for Stock J. Do not round intermediate calculations. Round your answer to two decimal places.fill in the blank % Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places.fill in the blank %Calculate the standard deviation for Stock J. Do not round intermediate calculations. Round your answer to two decimal places.fill in the blank %Excel Online Structured Activity: Historical Return: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y Market 2011 14 % 12 % 10 % 2012 20 7 9 2013 -13 -2 -13 2014 3 1 2 2015 19 9 12 Assume that the risk-free rate is 4% and the market risk premium is 6%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet What is the beta of Stock X? Do not round intermediate calculations. Round your answer to two decimal places. fill in the blank 2 What is the beta of Stock Y? Do not round intermediate calculations. Round your answer to two decimal places. fill in the blank 3 What is the required rate of return on Stock X? Do not round intermediate calculations. Round your answer to one decimal place. fill in the blank 4 % What is the required rate of return on Stock…
- Don't use chatgpt, I will 5 upvotes The probability distribution of returns of Stutson Gheegi Manufacturing is presented below. what is the standard deviation of returns of Stutson Gheegi? (recurring content question) \table[[Probability,Return],[10%,28%use attachment to answer question This question relates to Diagram 1 from the Quiz 9.4 diagrams, which shows the Security Market Line. What is the expected return on the market? Select one: a. 20% b. 10% c. 15% d. 5%Accessibility tab summary: Given information for this question is presented in rows 2 through 10. Requirement information is presented in rows 12 through 20. Market Data Return Standard Deviation Beta Market Data 0.120 0.200 1.000 Risk-Free Rate 0.025 0.000 0.000 Company Data A B C Alpha 0.015 0.020 -0.005 Beta 1.200 0.800 1.250 Residual standard deviation, σ(e) 0.105 0.195 0.067 Standard Deviation of Excess Return 0.245 0.235 0.210 Required: Using the data above, please solve for the Sharpe Ratio, Treynor's Measure, and Information Ratio. (Use cells A3 to D10 from the given information to complete this question. Negative answers should be input and displayed as a negative values. All other answers should be input and displayed as positive values.) Risk-Adjusted Performance Measures A B C Market Sharpe Ratio Treynor's…
- Characteristic Line and Security Market Line You are given the following set of data: Historical Rates of Return Year NYSE Stock X 1 -26.5% -11.0% 2 37.2 25.0 3 23.8 13.5 4 -7.2 2.0 5 6.6 11.1 20.5 18.5 7 30.6 19.0 a. Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X's beta coefficient. Do not round intermediate calculations. Round your answer to two decimal places. b. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for both Stock X and the NYSE. Do not round intermediate calculations. Round your answers to two decimal places. Stock X NYSE Average return, FAvg % % Standard deviation, ơ %Question content area top Part 1 (Related to Checkpoint 8.3) (CAPM and expected returns) a. Given the following holding-period returns, LOADING... Month Sugita Corp. Market 1 2.4 % 1.0 % 2 −1.0 2.0 3 0.0 3.0 4 0.0 0.0 5 7.0 7.0 6 7.0 1.0 , compute the average returns and the standard deviations for the Sugita Corporation and for the market. b. If Sugita's beta is 1.84 and the risk-free rate is 6 percent, what would be an expected return for an investor owning Sugita? (Note: Because the preceding returns are based on monthly data, you will need to annualize the returns to make them comparable with the risk-free rate. For simplicity, you can convert from monthly to yearly returns by multiplying the average monthly returns by 12.) c. How does Sugita's historical average return compare with the return you should expect based on the Capital Asset…PLEASE ANSWER ALL THE QUESTIONS Question 1 Fill the parts in the above table that are shaded in yellow. You will notice that there are nine line items. Question 2 Using the data generated in the previous question (Question 1);a) Plot the Security Market Line (SML) b) Superimpose the CAPM’s required return on the SML c) Indicate which investments will plot on, above and below the SML? d) If an investment’s expected return (mean return) does not plot on the SML, what does it show? Identify undervalued/overvalued investments from the graph Question 3 From the information generated in the previous two questions; a) Identify two investment alternatives that can be combined in a portfolio. Assume a 50-50 investment allocation in each investment alternative. b) Compute the expected return of the portfolio thus formed. c) Compute the portfolio’s beta. Is the portfolio aggressive or defensive?