A6) Consider the following annual closing prices of stock A and stock B.CARABDateStock A Prices (in $) Stock 8 Prices (in $)813788637578452876810387105102117969491781001234689Year 1Year 2Year 3Year4YearYearYear 7Year 8Year 91611 Year1956O 3.05 %O 3.81 %O 2.28%O 0.76%9101112 Year13 Year14 Year15 Year 1416 Year 1517182345390339494442450438427392440370334465DIf you had invested 10 percent of your total investment on stock A and 90 percent on stock B at thebeginning of the period, what would be the historical mean of the portfolio consisting of these twostocks?

Return for each period is calculated from the price and then mean is determined. Potfolio return is…

Consider the following annual closing prices of stock A and stock B. B Date: Stock A Prices (in $) Stock 8 Prices (in $) 81 86 78 87 68 103 87 105 G 8 Year 1 Year 2 Year 3 Year 4 Year S Year 6 Year 7 Year 8 167 9 @6 O 3.05 % O 3.81 % O 2.28% O 0.76% 10 Year 11 Year 12 Year 11 13 Year 14 Year 13 15 Year 14 16 Year 15 17 18 10 12 12 102 117 96 94 91 78 100 378 375 452 390 339 494 442 450 438 427 392 440 370 334 465 D If you had invested 10 percent of your total investment on stock A and 90 percent on stock B at the beginning of the period, what would be the historical mean of the portfolio consisting of these two stocks?

Consider the following annual closing prices of stock A and stock B. B Date: Stock A Prices (in $) Stock 8 Prices (in $) 81 86 78 87 68 103 87 105 G 8 Year 1 Year 2 Year 3 Year 4 Year S Year 6 Year 7 Year 8 167 9 @6 O 3.05 % O 3.81 % O 2.28% O 0.76% 10 Year 11 Year 12 Year 11 13 Year 14 Year 13 15 Year 14 16 Year 15 17 18 10 12 12 102 117 96 94 91 78 100 378 375 452 390 339 494 442 450 438 427 392 440 370 334 465 D If you had invested 10 percent of your total investment on stock A and 90 percent on stock B at the beginning of the period, what would be the historical mean of the portfolio consisting of these two stocks?

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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calculate the annual hpr and hpy from the daily stock prices below, please show working outs Exchange Date Close Open 11-Mar-2020 142.28 144.54 10-Mar-2020 142.48 144.64 09-Mar-2020 141.58 148.01 06-Mar-2020 158.01 156.80 05-Mar-2020 161.57 170.47 04-Mar-2020 169.06 171.82 03-Mar-2020 171.27 176.60 02-Mar-2020 173.33 182.78 28-Feb-2020 179.51 179.86 27-Feb-2020 184.28 191.12 26-Feb-2020 193.98 195.24 25-Feb-2020 196.04 202.37 24-Feb-2020 198.70 200.91 21-Feb-2020 205.08 207.29 20-Feb-2020 208.70 205.58 19-Feb-2020 206.99 208.90 18-Feb-2020 207.90 208.20 17-Feb-2020 210.01 212.02 14-Feb-2020 214.13 227.59 13-Feb-2020 229.80 229.00 12-Feb-2020 229.10 224.58 11-Feb-2020 223.57 227.09 10-Feb-2020 222.57 221.76 07-Feb-2020 223.97 225.08 06-Feb-2020 225.78 225.28 05-Feb-2020 222.67 223.07 04-Feb-2020 223.07 219.95 03-Feb-2020 218.14 216.64 31-Jan-2020 219.35 224.37 30-Jan-2020 222.57 219.65 29-Jan-2020 221.96 219.85…
Stocks 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.
Consider the following annual closing prices of stock A, values of market index (S&P 500) and Treasury bills rate. A B C с D Date Stock A Prices (in $) Market Index Value Risk Free Rate (in %) 2 Period 1 119 3 Period 2 100 11829 11843 9639 88 131 12854 9580 11640 8469 11412 9115 10682 NOSAWNH 1 4 Period 3 Period 4 6 Period 5 7 Period 6 8 Period 7 9 Period 8 10 Period 9 11 Period 10 12 O 1.1 13 What is the value of CAPM beta for stock A? O 1.4666 O 1.8333 O2.0533 82 113 O 0.3666 65 109 95 113 1.48 1.76 1.64 1.2 1.43 1.36 1.3 1.72 1.71 1.77
You bought a stock on 1 January 2018 for $135.5 and below are the year-end price data and annual dividends for the stock: Date Closing Price Annual Dividend 31 December 2017 135.5 3.6 31 December 2018 138.2 3.65 31 December 2019 136.8 3.5 31 December 2020 140.7 3.7 What is the standard deviation of returns on this stock over the 2018-2020 period? 0.0173 0.0005 0.0009 0.0212 O 0.0303
Consider the following annual closing prices of stock A, values of market index (S&P 500) and Treasury bills rate. 1 2 3 45678 A B C D Date Stock A Prices (in $) Market Index Value Risk Free Rate (in %) Period 1 112 12102 Period 2 95 10773 120 12680 99 10487 121 11475 128 12318 90 8587 105 9914 129 11772 110 9987 121 12042 102 10613 Period 3 Period 4 Period 5 Period 6 Period 7 9 Period 8 10 Period 9 11 Period 10 12 Period 11 13 Period 12 14 15 What is the value of CAPM beta for stock A? 1.45 1.24 1.36 1.4 1.67 1.41 1.69 1.72 1.24 1.08 1.52 1.71
Use the given stock table to find the closing price for ABC Technologies (ABC). 52-Week Div Yld Vol 100s Close SYM Amt % PE ABC 2.16 3.5 17 5915 62.07 High 75.67 Low Stock 39.43 ABCTch The closing price was $ Net Chg 1.45
Use the information in the following stock quote to answer the question: As of February 1, 2XX1 Name Symbol Open High Low Close Net Chg Div Yield PE Target TGT 87.01 87.32 86.75 87.05 -0.32 2.56 2.93 16.76 What was Target’s earnings per share over the last year? (Round your answer to 2 decimal places. (e.g., 32.16))
X company stock price was $10 at the beginning of 2018, $14 at the beginning of 2019, $15 at the beginning of 2020, and $19 at the ending of 2020. Based on the previous information what will be the coefficient of variation for the stock assuming that the returns are equally probable. a a. 28.4% O b. 36.3% Oc. 67% O d. 73.2% Clear my choice
Based on the following, how much is the value of the stock at the end of year 5? D1 = 3.00; D2 = 3.09; MV0 = P30. a. P33.12 b .P33.78c. P34.78 d. P35.82
A stock has had the following year-end prices and dividends: Year Price 0 012345 1 $ 15.00 17.18 18.18 16.68 19.02 22.13 Dividend $ 0.15 0.38 0.40 0.42 0.48 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Arithmetic return Geometric return % %
Stocks A and B have the following historical returns: Year 2016 2017 2018 2019 2020 Stock A's Returns, ra (15.40%) 29.00 14.25 (5.00) 26.00 Stock B's Returns, ra (15.80%) 21.10 37.30 (6.20) 12.45 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: Stock B: 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 CV 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. % % % c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Stock A Stock B Portfolio Standard Deviation d. Calculate the coefficient of variation for each…
Stocks A and B have the following historical returns: 2017 2018 2019 2020 Year Stock A's Returns, "A Stock B's Returns, r 2016 (23.80%) 22.50 (17.70%) 24.50 ITT 14.25 (2.25) 25.00 24.00 (9.70) 14.60 % 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: Stock B: % 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. % c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Standard Deviation Stock A % Stock B % Portfolio % d. Calculate the coefficient of…

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