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: 1 0.2 0.3 2 0.10 0.1 3 0.14 0.18 4 0.05 0.00 5 0.01 -0.08 i. Calculate the arithmetic average return…

A: Arithmetic average can be calculated by sum of all divided by number of returns.

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: 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: 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: 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: 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: 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: A stock has had returns of 25 percent, 12 percent, 6 percent, –17 percent, -6 percent, and 22…

A: Arithmetic Return: It is the total return of the stock that is divided by total number of years. It…

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: 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: Suppose a stock has generated the following annual returns: 13.6%, -12.1% and 7.6%. What was its…

A: Annual returns are as follows13.6%-12.1%7.6%

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: Assume the following information concerning a two-stock portfolio: Stock X Stock Y Please calculate…

A: The formula to calculate correlation coefficient isCorrelation coefficient=Covariance between stock…

Q: Using the data in the following table, The average annual return for stock A is calculated the…

A: Portfolio Volatility CalculationHere's how to calculate the volatility (standard deviation) of the…

Q: Suppose a stock has generated the following annual returns: 11.4%, -7.9% and 5.4%. What was its…

A: Here,Annual Return are as follows:11.4%-7.9%5.4%

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: Please explain the price movements of each stock's DIS AND WFC from the past three months shown in…

A: Price Movements and returns:  Stock prices are dynamic and constantly change to reflect the changes…

Q: Stocks A and B have the following historical returns: Year 2016 2017 2018 2019 2020 20.05 a.…

A: The coefficient of variation is represented as it is considered as the ratio of a standard deviation…

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: 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: Stocks C and F have the following historical returns: Year return (HPY) of C return (HPY) of F 2016…

A: The presentation of the ratio of the standard deviation of the project and the average return of a…

Q: A stock has the following returns over a 3 year period: 25%, -4%, 8%. What is this stock's geometric…

A: Geometric Average Return is the actual annual return of an investment earned during a certain period…

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: 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: 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: 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: 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 23.6% 46.3% 24.7% 26.7% 30.5% 86.9% 9.0% 23.1%…

A: Expected Return:The expected rate of return refers to the anticipated gain or loss on an investment…

Q: Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns,…

A: A portfolio is a mix of financial assets that a person, business, or other entity has, including…

Q: Two common stocks, Consolidated Edison and Apple, have the following expected return and standard…

A: Given:

Q: Review the following market information: Current Stock Market Return                    11.25%…

A: As per CAPM, Required Return = Risk free Rate + Beta * (Market return - risk free rate) where, Risk…

Q: You find a certain stock that had returns of 10 percent, −17 percent, 23 percent, and 15 percent for…

A: Given: Returns = 10%, -17%, 23%, 15% Average return = 10%

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

A: Stock AStock B2010-10%19%201119%39%20124%24%2013-3%-8%20145%-8%201512%35%Weights60%40%

Q: The historical returns data for the past three years for Company A's stock is -6.0%, 15%,  15% and…

A: Security market line: A security market line is the graphical representation of capital asset…

Q: What is the SD for a stock that has annual returns for 4 years 6%,-4%,8% and -12%?  9.0 9.3 9.6…

A: A statistical measure that represents the variation in the return on the stock is term as the…

Q: Refer to the given (annual data to compute the stock's beta if the market standard deviation is 0.22…

A: Tabulate data and use formula as shownStandardDeviation os stock price = 8.36%

Q: USE THE FOLLOWING DATA FOR QUESTIONS 4-6: A portfolio is equally invested in Stock A, Stock B, Stock…

A: Portfolio investment can be referred to as a pool of assets that is comprised of various securities…