How do you calculate conditional volatility of a stock returns?

Q: Why does the dilutive effect of stock options called the treasury stock method?

A: Treasury Stock Method: In this method, a company that receives exercised amount on the outstanding…

Q: Common stock has par value, and market value. Explain briefly these values. Which one is most…

A: Par value of common stock : Par value corresponds to the equity valuation specified in the corporate…

Q: How does higher expected growth affect a stock’s value?

A: Stock value is referred to as the shares of the corporation, which used to appear to trade at the…

Q: How do you calculate price earnings ratio, given the stocks historical prices?

A: Price earnings ratio is ratio of price per share and earning per share. PE ratio=Price per…

Q: How can you chart and predict falling or rising wedges for stocks?

A: Short-term, medium-term, and long-term trends: Stock Prices move either upwards, downwards, or…

Q: discuss what is the stock price?

A: >Stocks, when referred to in relation with the paid in capital of a corporation, refers to the…

Q: What stock valuation models are available?

A: The stock valuation models as follows: Absolute valuation: This method mostly emphases on finding…

Q: How will the presence of these and other similar stock options affect NEV’s earnings pershare?

A:

Q: what would be the stock price?

A: Current stock price refers to the present value of the share based on the future expected payoffs.…

Q: Is stock price maximization good or bad forsociety?

A: Answer: Maximization of stock prices occurs because it benefits the society at large. The stock…

Q: On what do stock valuations rest?

A: The answer:

Q: What is a stock’s volatility?

A: Stock Volatility:   Volatility is defined as a statistical measure of the dispersion of the returns…

Q: Define required rate of return on stock

A: Answer: Usually, return is a benefit received on investment. This covers any change in stock…

Q: How to use call options and put options to create a synthetic short position in stock?

A: An options are actually touted as one of common method for the profit from the swings of the market.…

Q: Explain required rate of return on stock

A: The required rate of return is the minimum acceptable rate of return that an investor expects to…

Q: Calculate the expected return for Stock A.

A: Expected Return: It represents the profit or loss expected by an investor on an investment. It is…

Q: Explain how to find the value of a nonconstant growth stock

A: Introduction: Non-constant models of growth presume that the valuation can fluctuate over time. This…

Q: Which of the following best describe a speculative stock? high risk, low volatility, start-ups high…

A: Speculative stocks are those where the price of stock changes too frequently and are quite volatile.

Q: How do you calculate the beta of stock?

A: Beta is the measure of stock's volatility to the overall market, and is calculated as-

Q: The return of stock B is __% The volatility of stock A is __% The volatility of stock B is __%

A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…

Q: Higher a stock’s volatility, why does the higher the probability of large increases or decreases in…

A: Stock Volatility:   Volatility is defined as a statistical measure of the dispersion of the returns…

Q: Define actual rate of return on stock

A: Actual rate of return on stock

Q: Which of the following techniques is used to value stock options?   a. Black-Scholes method b.…

A: black scholes method is used to value options

Q: Explain how to find the value of a stock given itslast dividend, its expected growth rate, and…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: What is the expected return on the firms stock

A: Here, Proportion of Debt is 75% Proportion of Equity will be (1-75%) = 25% Cost of Debt is 5% Risk…

Q: How do stock repurchases affect the EPS and ROE ratios?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: To estimate the required rate of return on a stock we can use the Capital Asset Pricing Model (CAPM)…

A: The required rate of return on a stock can be defined as a rate of return which an investor would…

Q: How do we determine the book value of a stock?

A: Book value is the value of total equity or net asset value of the business. The book value of stock…

Q: What is current stock price?

A: Stock means equity part of the company. Companies’ capital structure may contain debt, equity, and…

Q: You would like to speculate on a rise in the price of a certain stock. The current stOCK

A: Speculation is a strategy of trading stock in which the investor buys or sells the stocks by…

Q: binomial model account of volatility

A: Volatility is simply referred to as the uncertainty or risk in the change in the value of a…

Q: What effect do increasing inflation expectations have on the required returns of investors in common…

A: Inflation: it is increase in the price of most of the goods and services.

Q: What will be the current stock price?

A: The current price of a stock is the most recent selling price of a stock in the market. It is the…

Q: How will the change in required return influence the price of a stock? How will the dividend growth…

A: The Gordon growth model calculates the price of the stock by using the dividends, growth rate of…

Q: Discuss the impact of investor sentiment on stock returns conditional on economic conditions

A: Investor's sentiment means the attitude of the investors toward different securities or even the…

Q: What are the two sources, or components of return for stock?

A: A share in the ownership of a company is known as stock. When stock is purchased a small piece in…

Q: Stock X has the following data. Assuming the stock market is efficient and the stock is in…

A: The Constant Growth Model was developed by Gordon. This method assumes that a company grows at a…

Q: Let's explore the difference between "expected" and "actual" return of a stock. 1) How might we…

A: 1) The expected return (also known as the "expected rate of return") is the profit or loss that can…

Q: What is margin requirement (for stock)?

A: While trading for the investments in the stock market, there are two methods through which investors…

Q: How would you use these to evaluate whether or not a current stock price is perhaps to high…

A: The term stock price refers to the current market price of a share of stock, and every…

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.