Am. 134. Compute daily abnomal returns of MRK and RXDX on the announcement day. Since April 16, 2023 was Sunday (= notrading), use the following trading day, April 17, 2023, as the announcement day for this analysis. Use daily returns onSPY (S&P500 ETF) as benchmark retums during the same period and 0.018% as daily risk free rate. Show your work inExcel to receive any credit.10 4/12/2023 113.7511 4/13/2023 115.5812 4/14/2023 115.31 -0.23%13 4/17/2023 115.01 -0.26%4 4/18/2023 114.831.12%1.61%4/12/2023 112.25 -1.51%4/13/2023 112.86 0.54%4/14/2023 114.01 1.02%4/17/2023 193.51 69.73%4/12/2023 408.05 -0.41%4/13/2023 413.47 1.33%-0.16%4/18/2023 193.5 -0.01%4/14/2023 412.46 -0.24%4/17/20234/18/2023 414.21413.94 0.36%0.07%MRXRXDXSPY

4. Calculate Abnormal Returns:In an empty column after the daily return columns (e.g., Column G for…

Answered: Compute daily abnomal returns of MRK…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Show the monthly return of the company and S&P 500 in the same graph. What is your interruption interpretation of the change of return of the company comparing with the market index? Calculate the monthly standard deviation and return for both the company and S&P 500. What is your interruption of the risk and return of the company comparing with the market index? S&P 500 last 6 months : Date Open High Low Close* Adj. close** Volume 01 Apr 2022 4,540.32 4,593.45 4,381.34 4,392.59 4,392.59 37,024,560,000 01 Mar 2022 4,363.14 4,637.30 4,157.87 4,530.41 4,530.41 100,978,320,000 01 Feb 2022 4,519.57 4,595.31 4,114.65 4,373.94 4,373.94 73,167,790,000 01 Jan 2022 4,778.14 4,818.62 4,222.62 4,515.55 4,515.55 73,279,440,000 01 Dec 2021 4,602.82 4,808.93 4,495.12 4,766.18 4,766.18 68,699,830,000…
You have at hand the historical monthly excess returns of Strategy X over 12 months. In addition, you have the monthly excess returns to the market. The risk free rate is 2%. Excess returns (monthly) Strategy X Market 0.012 0.011 0.007 0.009 0.014 0.007 0.013 0.004 0.005 0.013 0.008 0.006 0.011 0.010 0.006 0.011 0.010 0.010 0.014 0.009 0.008 0.004 0.009 0.007 Required: Calculate the annualised CAPM alpha for Strategy X.
(Computing rates of return) From the following price data, compute the annual rates of return for Asman and Salinas. Time 1 2 3 12 4 14 (Click on the icon in order to copy its contents into a spreadsheet.) How would you interpret the meaning of the annual rates of return? Asman $9 11 Salinas $30 27 32 36 The rate of return you would have earned on Asman stock from time 1 to time 2 is %. (Round to two decimal places.)
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he following data represents the annual sales of a Digitech Automation products SAOG. Year 2014 2015 2016 2017 2018 Sales (in Millions) OMR 380 440 520 396 514 Use method of least squares to calculate the trend values and the forecast for the future period. Which of the following is the annual sales forecast for the year 2019 using least squares method? a. 539.6 Million OMR b. 584.4 Million OMR c. 606.8 Million OMR d. 562 Million OMR
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From the following price data, compute the annual rates of return for Asman and Salinas. Time Asman Salinas 1 $ 10 $ 31 2 13 27 3 12 33 4 14 35 (Click on the icon in order to copy its contents into a spreadsheet.) How would you interpret the meaning of the annual rates of return? Question content area bottom Part 1 The rate of return you would have earned on Asman stock from time 1 to time 2 is enter your response here %. (Round to two decimal places.) Part 2 The rate of return you would have earned on Asman stock from time 2 to time 3 is enter your response here %. (Round to two decimal places.) Part 3 The rate of return you would have earned on Asman stock from time 3 to time 4 is enter your response here %. (Round to two decimal places.) Part 4 The rate of return you would have earned on Salinas stock from time 1 to time 2 is enter your response here %. (Round to two decimal places.) Part 5…

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