Here are the percentage returns on two stocks. Executive Digital Cheese Fruit 4% 2 Month January February March April May June July August 14% 4 6 Variance Standard deviation % 4 14 a-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 1 decimal places.) Digital Cheese 47.5 69 Executive Fruit 232 48

Q: During the last four years, ADL Co. had the following stock prices at the end of each year (starting…

A: Semi-variance only considers the values of stock that fall below the average of the data set for the…

Q: During the last four years, ADL Co. had the following stock prices at the end of each year (starting…

A: Semi-variance is a measure of downside risk or volatility that focuses on the observations or data…

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: The following table,, shows the one-year return distribution of Startup, Inc. Calculate: a. The…

A: The expected return of the stock refers to the average benefits that the stock provides to the…

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: 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: Summary statistics for returns on two stocks X and Y are listed below. Stock X Stock Y Mean 2.85%…

A: Variance of a portfolio depicts the risk of the portfolio and is dependent upon standard deviation…

Q: Calculate the variance and standard deviation of each stock.

A: Portfolio is a collection of securities or investments. It is beneficial to the investors by…

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

A:

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: Refer to the table below: Expected return, E(R) Standard deviation, o Correlation 3 Doors, Inc. 17%…

A: A portfolio is created by collecting different classes of assets to minimum the risk associated with…

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: Summary statistics for returns on two stocks X and Y are listed below. Stock X Stock Y Mean 5.81%…

A: Portfolio mean return or portfolio expected return is the sum of weighted average returns of…

Q: Diversification. Here are the returns on two stocks. (LO11-3) Digital Cheese Executive Fruit January…

A: Solution (A) calculate the variance and standard deviation of each stock as follow- A B C Month…

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

A: Variance is a tool which shows the risk involved in assets. It is computed simply by squaring…

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: 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: Please solve using Excel and show formulas. Here are the percentage returns on two stocks. Month…

A: Variance refers to the measurement of the distance between each number from its mean value and helps…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: average annual return, variance,and standard deviation of a stocks returns are calculated to…

Q: Compute each stock's average return, standard deviation, and coefficient of variation. (Round your…

A: Return The profit or loss an investor makes from an investment is called a return. All investors'…

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 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: 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: Refer to the table below: Expected return, E(R) Standard deviation, o Correlation 3 Doors, Inc.…

A: A minimum variance portfolio refers to the mix of investments that provides the lowest level of risk…

Q: A stock had returns of 14.43 percent, 18.87 percent, −14.99 percent, 12.39 percent, and 25.37…

A: Variance refers to the degree to which the return of a stock or asset vary over the time.

Q: None

A: Conclusion :- 1. Expected return = 9.84%2. Standard Deviation = 13.36%

Q: sider the following annual returns of Estee Lauder and Lowe’s Companies:     Estee Lauder Lowe’s…

A: Standard deviation is the statistical measure of the risk of the stock and it is measured as…

Q: Use the data below to construct the Arms ratio on each of the five trading days. Note: Do not round…

A: Arms ratio- This ratio indicates the relationship between advancing stocks and declining stocks,…

Q: Here are the returns on two stocks. Digital Cheese Executive Fruit January +18 +8 February -4 + 1…

A: MonthsReturnReturnMonthDigital CheeseExecutive…

Q: Calculate the variance and standard deviation of each stock

A: The Variance will be ascertained by taking taking square of the differences between each case return…

Q: A stock had retuma of n percent, 26 percent, 8 percent, and -38 percent annually for the past 4…

A: Mean is the central value of discrete set of values. It is determined by dividing the sum of all the…

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

A: In finance, standard deviation refers to a statistical metric used to measure the extent of…

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…

Q: UNIT 7-7

A: ConclusionGiven the calculations:Stock A is better because it has a higher expected rate of return…

Q: Here are the returns on two stocks. Digital Executive Cheese Fruit January +15 +7 February -3 +1…

A: Step 1:Answer(a-1) Digital Cheese1. Mean return:2. Variance:Where N is the number of returns (8 in…

Q: pra.4

A: Step-by-Step Calculation of Portfolio Variance1. Convert Standard Deviations from % to…

Q: which stocks are undervalued or overvalued. a. Padma – 22 percent

A: Expected return from the portfolio is the weighted average of the return generated from the…

Q: Here are the percentage returns on two stocks. Digital Executive Cheese Fruit 4% 14% -4 2 6 Month…

A: Stocks are the securities which give the investor an ownership interest in the cash flows and the…

Q: You find a certain stock that had returns of 16 percent, -9 percent, 23 percent, and 24 percent for…

A: Standard deviation is computed by following formula-Standard deviation = WhereR = return of stockN =…

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

A: ProbabilityReturn10%-30%20%-20%15%0%25%20%30%30%Expected return7.00%Workings

Q: The returns on Relnvest Ltd. and GEM Inc. stocks over the past five months are as follows: Relnvest…

A: Given information: Returns of two stocks from January to May   Reinvest Ltd GEM Inc January 15%…

Q: The last four years of returns for a stock are as follows: Year Return 1 - 4.3% 2 28.1% 3 11.6% a.…

A: Stock returns:Stock returns refer to the financial gains or losses that an investor experiences…

Q: Baghiben

A: The objective of the question is to calculate the expected return and standard deviation of the…

Q: Here are the returns on two stocks. Digital Executive Cheese Fruit January +19 +9 February -2 +1…

A: Risk and returns:In analyzing the returns of the two stocks, Digital Cheese and Executive Fruit, we…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.