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Find the standard deviation for a security that has three one-year returns of -1%,8% , and 16%, respectively .
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- A security has an average return of 10% and a standard deviation of 03. If the security is normally distributed, then about 95% of the time, the security return will be between 1% and 19%. between 1% and 10%. between 7% and 13%. between 3% and 19%. between 4% and 16%.Suppose the average return on Asset A is 6.6 percent and the standard deviation is 8.6 percent and the average return and standard deviation on Asset B are 3.8 percent and 3.2 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel® to answer the following questions. a. What is the probability that in any given year, the return on Asset A will be greater than 11 percent? Less than 0 percent? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the probability that in any given year, the return on Asset B will be greater than 11 percent? Less than 0 percent? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. In a particular year, the return on Asset A was −4.25 percent. How likely is it that such a low return will recur at some point in the future? (Do…uppose the average return on Asset A is 7.1 percent and the standard deviation is 8.3 percent, and the average return and standard deviation on Asset B are 4.2 percent and 3.6 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel® to answer the following questions. a. What is the probability that in any given year, the return on Asset A will be greater than 12 percent? Less than 0 percent? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the probability that in any given year, the return on Asset B will be greater than 12 percent? Less than 0 percent? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. In a particular year, the return on Asset A was −4.38 percent. How likely is it that such a low return will recur at some point in the future? (Do not round…
- 2. Security with normally distributed returns has an annual expected return of 10% and a standard deviation of 6%. The probability of getting a return between -1.76% and 21.76% in any one year is"A security with normally distributed returns has an annual expected return of 15% and standard deviation of 9%. The probability of getting a return between -2.64% and 32.64% in any one year is _______ Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"Possible returns and their probabilities for an asset is given in the table below. The expected return is 30.25%. Calculate the standard deviation of the asset's return. Probability 0.40 0.45 0.15 13.92% O 17.84 % 18.55% O 19.09% 16.59% Return 0.52 0.17 0.12
- An asset has normally-distributed returns, with mean of 10.6% and standard deviation of 14.8%. What is the 2% VaR (value at risk) return? Enter answer in percents.Asset A has an expected return of 14% and a standard deviation of 20%. The risk-free rate is 8%. What is the reward-to-variability ratio?Suppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows:1R1 = 6%, E(2r1) = 7%, E(3r1) = 7.5%, E(4r1) = 7.85%Using the unbiased expectations theory, calculate the current (long-term) rates for one-, two-, three-, and four-year-maturity Treasury securities. Plot the resulting yield curve.
- Suppose that the current one-year rate and expected one-year T-bill rates over the following three years (vears 2, 3, and 4, respectively) are as follows: 1R1 = 0.6%, E(21) = 1.1%, E(3r1) = 1.8%, E(4r1) = 2.7% Using the unbiased expectations theory, calculate the current rates for two-, three-, and four- year maturity Treasury securities. Round your final answer to 2 decimal places using percentage format (ex. - 1.23% should be entered as 1.23). Don't round intermediate calculations. Two-year: % % Three-year: % Four-yearTwo investments generated the following annual returns (refer to image): a. What is the average annual return on each investment?b. What is the standard deviation of the return on investments X and Y?c. Based on the standard deviation, which investment was riskier?Consider the following variance-covariance matrix for Security A, Security B, and the Market: Variance-Covariance Matrix A B Market A 0.562500 0.091875 0.028125 0.091875 0.122500 0.021000 B Market 0.028125 0.021000 0.022500 For the coming year, the Market Risk Premium is 5.5 percent and the risk-free rate is 2.0 percent. Determine the required return for Security A using both the Capital Market Line and the Security Market Line (CAPM). What is the (absolute) difference between these two required returns? 12.375% O 16.875% 20.625% Ⓒ 7.700% 6.300%