Estimate a stock's beta (i.e., the sensitivity of the stock's returns to the returns on the market) based on the following information about the changes in stock returns and market returns over the course of three months: Month 1: Stock -2.5%, Market -2%. Month 2: Stock -.5%, Market -.25%. Month 3: Stock +1.5%, Market +1.25%.

Q: A stock had returns of 14 percent, 13 percent, −10 percent, and 7 percent for the past four years.…

A: Range of stock refers to the stock price which defines the starting and ending price in a specified…

Q: The following are the monthly rates of return for Madison Cookies and for Sophie Electric during a…

A: a.Calculation of Average Monthly Rate of Return for each stock:The Average Monthly Rate of Return is…

Q: please with proper formula.You find a particular stock has an annual standard deviation of 55…

A: Data given: Annual standard deviation of 55 %   Required:  Standard deviation for a two-month period

Q: PLEASE EXPLAIN HOW ANSWERS WERE FOUND   Using the data in the following​ table,calculate the…

A: Here, YearStock AStock…

Q: Part 1 Calculate the annual returns. What was the arithmetic average annual return for stock B? 4+…

A: Arithmetic Average Return: It refers to the return on investment computed by adding the returns for…

Q: A stock has had returns of -5.32 percent, -7.58 percent, 4.68 percent, 7.7 percent, 8.98 percent,…

A: The below expression can be used to calculate geometric average return:

Q: Here are the returns on two stocks. Digital Executive Cheese Fruit January +13 +6 February -2 +1…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: s. What is the geometric average return for this time period?

A: Geometric Average: It is the average return for a set of values computed with the products of the…

Q: The monthly rates of return for two corporations are given below: Month ABC Ltd. XYZ Ltd. January…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Stock prices over 5 months are observed to be $110.00, $115.00, $98.00, $107.00, and $112.00. What…

A: The annualized standard deviation for the given prices of the stock over the months can be found by…

Q: Here are the returns on two stocks. Digital Cheese Executive Fruit January +19 +8 February -3 +1…

A:

Q: A stock had returns of 2 percent, 1.4 percent, -4.2 percent, 5.8 percent, -9.9 percent, and 17.8…

A: To calculate the arithmetic average return we will use the below formula   Arithmetic average return…

Q: .5%, -1%, -1.5%, and 0%. What is its average and tandard deviation (pick the closest one)? 0%, 1.27%…

A: Average is also known as mean which shows the middle or central value of data. It is also called a…

Q: Using the data in the following table, calculate the volatility (standard deviation) of a portfolio…

A: ParticularStock AStock B2010-6%17%201120%4%20123%1%2013-1%-1%20145%-12%201515%25%

Q: Here are the percentage returns on two stocks. Digital Executive Fruit Cheese 178 Month January…

A: The standard deviation of returns is a statistical measure used to determine the risk associated…

Q: A stock has yielded returns of 6 percent, 11 percent, 14 percent, and -2 percent over the past four…

A: The formula to calculate mean value is given below:

Q: 3. Below are the returns for the past five years for Stock S and for the overall market: Market (km)…

A: In simple words beta is the sensitivity index of stock's return to return of the market index. Beta…

Q: Year 1 2 3 4 5 6 Stocks -15.69% -26.77 37.43 24.13 - 7.56 6.77 Treasury Bills 7.49% 8.09 6.07 6.07…

A: Standard deviation is a statistical measure of the amount of variability or dispersion in a set of…

Q: The last four years of returns for a stock are as follows: 2 28.5% Year Return 1 -3.7% 3 11.7% a.…

A: Average annual retrun can be compute by using the following formulaAverage annual retrun (R) = Total…

Q: The table given below reports last five years data on rates of return on two stocks. Calculate and…

A: Arithmetic mean = sum of returns

Q: Here are the returns on two stocks.       Digital Cheese Executive Fruit January     +18     +6…

A: Part (a) – 1: Calculation of variance and standard deviation: Excel spreadsheet:

Q: Looking at this graph, where do you think you can find the Beta? Remember that a Beta roughly…

A: Beta is the systematic risk involved with the asset. It tell how sensitive the asset returns are to…

Q: subject : Investment Fundamentals - Calculate Variance and Standard Deviation of those 3 stocks…

A: Standard deviation: It is the risk associated with the deviation of stock from its index.

Q: GM stock produced the following monthly returns (Jan.- May): 5%, 8%. -2%, 12%and 15% Ford stock…

A: Standard deviation measures the dispersion of the data and is used to calculate the risk.…

Q: Here are the returns on two stocks. Digital Executive Cheese Fruit January +16 +9 February -4 +1…

A: Return in finance is defined as periodic income earned on an investment in a real or financial…

Q: Digital Cheese 15% -4 Еxecutive Fruit 7% 2 Month January February March April Мay June 13 July…

A: Variance = ∑(r-rbar)2/(n-1) Standard deviation = √variance Portfolio variance = (W1*SD1)2 +(W2*SD2)2…

Q: Here are the returns on two stocks. Digital Executive Cheese Fruit January +15 +8 February -2 +1…

A: A stock is a capital markets security that offers the investor an ownership interest in the company…

Q: The historical returns for the past three years for Stock B and the stockmarket portfolio are: Stock…

A: To calculate the beta for Stock B, we need to find the covariance between Stock B's returns and the…

Q: Suppose a stock has generated the following annual returns: 13.9%, 12.9% and 7.9%. What was the…

A: Annual returns per year:YearAnnual returns113.9%212.9%37.9%

Q: Estimates of a stock's beta may vary depending on   I. when the estimate was made II. the…

A: Beta is one of  numeric value that measures the fluctuations or changes of a stock to changes in the…

Q: Stock in MDI Corp. has had the following returns over the last 3 years. Calculate the standard…

A: Average return (Ar) =(Sum of all returns) / Number of return=>Average return (Ar) = (-0.5%…

Q: Here are the percentage returns on two stocks. Digital Executive Month Cheese Fruit January February…

A: Variance:Variance is a valuation of difference in each stock from the mean of stocks. It shows how a…

Q: Here are the returns on two stocks. January February March April May June July August Digital Cheese…

A: Here, Month D.C E.F January 14 8 February -4 2 March 6 5 April 8 12 May -5 3 June 4 6…

Q: A stock had returns of 11.57 percent, -15.55 percent, 21.95 percent, 27.00 percent, and 10.50…

A: Let the stock return for the year t be rt.Given,r1= 0.1157r2= 0.1555r3= 0.2195r4= 0.2700r5=0.1050

Q: ere are the returns on two stocks.                                                Digital Cheese…

A: Risk, Variance, and Standard Deviation: The possibility that the actual returns will be different…

Q: Annual returns of Stock in the past 5 years are presented in the following table: Year 1 Year 2…

A: The standard deviation quantifies the degree of deviation from the expected return,  It is an…

Q: Bear Stearns' stock price closed at $99, $104, $58, $31, $4 over five successive weeks. The weekly…

A: To calculate the standard deviation of the stock price, we first need to calculate the mean…

Q: A stock had returns of 17.95 percent -7.35 percent, and 23.90 percent for the past three years. What…

A: Standard Deviation of Return is the variation of returns that we can expect from the mean returns of…

Q: A stock has the following prices at the end of each of the following 5 years. What is the geometric…

A: Geoemetric average is the average based on the compounding effect of interest which gives a better…

Q: Year Return The last four years of returns for a stock are as follows: 1 - 3.6% 2 27.6% 3 4 11.9%…

A: Given: The last four years of return for a stock:Year1234 Return-3.60%27.60%11.90%4.10%  a.…

Q: Look up the daily trading volume for the following stocks during a recent five-day period: • Merck •…

A: Rate of return of the investment is the net loss or net gain on the investment. It is expressed as a…

Q: A stock had returns of 18.94 percent, 22.58 percent, -15.98 percent, 9.38 percent, and 28.45 percent…

A: Average return=Sum of Returns / Number of returns

Q: Here are the returns on two stocks. Digital Executive Cheese Fruit January +14 +8 February -4 +2…

A: The Standard Deviation and Variance:The standard deviation measures the average volatility of stock…

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.