he historical returns for the past three years for Stock B and the stock market portfolio are Stock B: 24 percent, 0 percent, 24 percent; market portfolio: 10 percent, 12 percent, 20 percent. Calculate the beta for Stock B. 1 1.17 1.13 0.86

Q: In the cell , by using cell references to the given data, calculate the value of stock A.  Stock A…

A: Next dividend (D1) = $1.20 Growth rate (g) = 8% Required return (r) = 13%

Q: In the cell , by using cell references to the given data, calculate the value of stock E. Stock E…

A: Let stock E's price be S. Next year dividend = $2.25 Growth rate = 8% Return required = 20%

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: Questions 6 The performance (%) of one stock and one bond over the past four years is as follows:…

A: Average return refers to the return earned over a specific unit. A unit can be a share, product,…

Q: A stock price is $20. It has an expected return of 12% and a volatility of 35%. What is the standard…

A: The objective of the question is to calculate the standard deviation of the change in the price of a…

Q: 1. Consider stocks A and B with the following past returns: Month 1 2 3 4 A 4% 6% 8% 2% B…

A: Given, Two stocks. Stock A and Stock B Stock A consists of 30% of portfolio and stock B consists of…

Q: Review the excerpted table of historic returns shown below.  The returns have all been annualized…

A: The conceptual formula is:

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: You have the following price for a stock for several recent years. Assume that the stock F year…

A: Here, F year               Begining of year price                   # of shares bought or sold 2005…

Q: Using the data in the following​ table,   Year             2010         2011         2012…

A: Portfolio: A portfolio is a collection of financial assets such as stocks, bonds, commodities, cash…

Q: A stock has a current price of 100. The stock price in two years is either 120 or 100 with equal…

A: The standard deviation is the variability between the annual returns of the stocks. It indicates the…

Q: During the same year, the risk-free rate was 5% and the return on the m portfolio was 12%. (1) What…

A: Return on portfolio and beta of portfolio can be calculated by weighted average return and beta of…

Q: In the cell, by using cell references to the given data, calculate the value of stock D. Stock D…

A: Expected dividend next year = D = $6 Growth rate = g = 8% Required return = Re = 9%

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: ven the following information for the stock of Foster​ Company, calculate the risk premium on its…

A: Price of Stock(Po) = Dividend per share next year(D1)/(Expected return - Dividend growth rate)…

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: D.) Two common stocks, consolidated Edison and Apple have the following expected return and standard…

A: EXPECTED RETURN OF PORTFOLIO FORMULA: rp=w1×r1+w2×r2where,w1= weight of stock 1r1= return of stock…

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: The dividend of a stock is expected to be $3.3/share in this period. The current price of the stock…

A: The total return earned by holding an asset or a portfolio of assets for a specific period of time,…

Q: Y shares have a monthly average return of 1% and a monthly return standard deviation of 6%. Returns…

A: A normal distribution, also known as a Gaussian distribution or bell curve, is a probability…

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: The market portfolio of stocks increases in value by​ 1.8%. You have a stock with a beta of​ -0.2.…

A: The objective of this question is to calculate the percentage change in the price of a stock given…

Q: A stock has had returns of 2 percent, -6 percent, 1 percent, -2 percent, and 5 percent over the last…

A: To calculate the geometric average return we will use the below formula   Geometric average return =…

Q: A stock’s returns for the past 3 years were 10%, 215%, and 35%.What is the historical average…

A: Working note:

Q: Here are forecasts for next year for two stocks:     Stock A Stock B Return on equity   18 %…

A: The growth rate of dividends can be computed by finding the retention ratio and multiplying it with…

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: 1. You are given the following information for a stock that has a lognormal distribution: • The…

A: We have the median stock price for 1 year and 5 years. We have to find the median stock price for…

Q: 6. Consider stocks A and B with the following past returns: Month 1 2 4 A 7% 8% 4% 6% 4% 5% 8% 2% a.…

A: GIVEN, month A B 1 7% 4% 2 8% 5% 3 4% 8% 4 6% 2%

Q: A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return…

A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…

Q: The figure in the popup window.. shows the one-year return distribution for RCS stock. Calcula a.…

A: The expected return of a probability distribution is the sum product of probability with its…

Q: - Calculate the average rate of return for each stock during the period 2x15 through 2x19. Assume…

A: Realized return of a portfolio means that return which is going to be received from the portfolio.…

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: 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: 20. Arithmetic and Geometric Returns A stock has had returns of –26 percent, 12 percent, 34 percent,…

A: The arithmetic mean is the average of a series of numbers whose sum is divided by the total count of…

Q: Year      AT&T Stock Returns       Market Index Returns  1                         8…

A: Beta of a stock is the slope between the market return and the stock return and is calculated in…

Q: An analyst gathered the following information for a stock and market parameters: stock beta = 1.42;…

A: The Capital Asset Pricing Model (CAPM), which takes into account ongoing testing and research, is a…

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: Review the excerpted table of historic returns shown below.  The returns have all been annualized…

A: Beta: It means the sensitivity of the stock in comparison to the market.

Q: If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year and the dividend payout ratio…

A: Stock price =PE *EPS Using the given values Stock price = 13.5 * 3                 = 40.5 So, stock…

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: You have developed data which give (1) the percentage annual returns of the market for the past five…

A: Beta is the measure of systematic risk. It measures how the stock returns move with respective to…

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

A: Given: Weight 75% 25% Year Stock A Stock B 2010 -10% 16% 2011 5% 20% 2012 2% 26% 2013…

Q: calculate the price of a stock that has a one-period horizon, is expected to pay a dividend of $.20…

A: Price of the stock needs to be determined. Expected divided next year is deterministic, however the…