Stocks A and B have the following historical returns:2017201820192020YearStock A's Returns, "AStock B's Returns, r2016(23.80%)22.50(17.70%)24.50ITT14.25(2.25)25.0024.00(9.70)14.60%a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places.Stock A:Stock B:%b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should beIndicated by a minus sign.YearPortfolio2016%2017%2018%2019%2020%What would the average return on the portfolio have been during this period? Round your answer to two decimal places.%c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places.Standard DeviationStock A%Stock B%Portfolio%d. Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places.CVStock AStock BPortfolioe. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio?-Select-✓

Portfolio rate of returnRate of return of a portfolio is the weighted average rate of return of all…

Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, re 2016 (23.80%) 2017 22.50 (17.70%) 24.50 2018 14.25 24.00 2019 2020 (2.25) 25.00 (9.70) 14.60 % a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: Stock B: % b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be Indicated by a minus sign. Year Portfollo 2016 % 2017 % 2018 % 2019 % 2020 % What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Standard Deviation Stock A % Stock B % Portfolio %

Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, re 2016 (23.80%) 2017 22.50 (17.70%) 24.50 2018 14.25 24.00 2019 2020 (2.25) 25.00 (9.70) 14.60 % a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: Stock B: % b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be Indicated by a minus sign. Year Portfollo 2016 % 2017 % 2018 % 2019 % 2020 % What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Standard Deviation Stock A % Stock B % Portfolio %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 1P

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Stocks A and B have the following historical returns: Year 2016 2017 2018 2019 2020 Stock A's Returns, ra (15.40%) 29.00 14.25 (5.00) 26.00 Stock B's Returns, ra (15.80%) 21.10 37.30 (6.20) 12.45 a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: Stock B: b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year Round your answers to two decimal places. Negative values should be indicated by a minus sign. Portfolio CV Year 2016 2017 2018 2019 2020 What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % % % c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Stock A Stock B Portfolio Standard Deviation d. Calculate the coefficient of variation for each…
Stocks A and B have the following historical returns:YearStock A's Returns, raStock B's Returns, ra2016(18.60%)(14.50%)201734.2520.40201814.7539.902019(1.00)(9.70)202026.7520.05a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places.Stock A:11.23%Stock B:11.23%b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign.YearPortfolio2016-16.55%201727.33201827.33%2019-5.35202023.40What would the average return on the portfolio have been during this period? Round your answer to two decimal places.11.23c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places.Stock AStock BPortfolioStandard Deviationd. Calculate the coefficient of variation for each…
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2016 (21.10 %) (14.70 %) 2017 23.50 28.50 2018 13.00 29.90 2019 (4.25 ) (10.40 ) 2020 27.75 5.60 Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: % Stock B: % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign. Year Portfolio 2016 % 2017 % 2018 % 2019 % 2020 % What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Stock A Stock B…
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2016 (23.80 %) (17.70 %) 2017 22.50 24.50 2018 14.25 24.00 2019 (2.25 ) (9.70 ) 2020 25.00 14.60 Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: % Stock B: %
cks A and B have the following historical returns: Year 2016 2017 2018 2019 2020 Stock A's Returns, ra (17.90%) 30.00 13.25 (3.50) 29.75 Stock B's Returns, ra (14.20%) 22.70 a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A 39.50 (7.10) 10.70 Stock B b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock 8. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign. Year 2016 2017 2018 2019 2020 What would the average return on the portfolio have been during this period? Round your answer to two decimal places. Portfolio CV e. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? ele Calculate the standard deviation of returns for each stock and for the portfolio. Hound your answers to two decimal places.…
Stocks A and B have the following historical returns: Year 2016 2017 2018 39.90 2019 (9.70) 2020 20.05 a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: 11.23 % Stock B: 11.23 % b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign. Portfolio Stock A's Returns, ra (18.60%) 34.25 14.75 (1.00) 26.75 CV Stock A Year 2016 Ⓡ 2017 % 2018 2019 2020 -16.55 27.33 Stock B's Returns, ra (14.50% ) 20.40 27.33 › › -5.35 23.40 What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % % 11.23 c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Stock B Stock A Portfolio %…
Stocks C and F have the following historical returns:Year return (HPY) of C return (HPY) of F2016 −18.00% −14.50%2017 33.00% 21.80%2018 15.00 % 30.50%2019 −0.50% −7.60%2020 27.00% 26.30%Required i. Calculate the geometric rate of return for each stock during the 5-year period. ii. Calculate the standard deviation of returns for each stock. iii. Calculate the coefficient of variation for each stock. iv. If you are a risk-averse investor then, assuming these are your only choices, discusswhether you would prefer to hold Stock C or Stock F.
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rA 2014 (19.00 (14.70 %) 2015 34.75 19.50 2016 13.75 30.90 2017 (4.25 (9.30 ) 2018 34.25 33.10 Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places. Stock A Stock B Portfolio CV Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio?
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rA 2014 (19.00 (14.70 %) 2015 34.75 19.50 2016 13.75 30.90 2017 (4.25 (9.30 ) 2018 34.25 33.10 Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A: % Stock B: % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign. Year Portfolio 2014 % 2015 % 2016 % 2017 % 2018 % What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Stock A Stock B Portfolio…
Intro You've collected the following historical rates of return for stocks A and B: Year (t) FA,t FB,t 2016 0.02 0.01 2015 0.08 0.05 2014 0.17 0.07
Assume these are the stock market and Treasury bill returns for a 5-year period: T-Bill Return Year Stock Market Return (8) (8) 2016 32.50 0.07 2017 11.80 0.07 2018 -2.40 0.07 2019 13.70 0.25 2020 22.40 0.27 Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Complete this question by entering your answers in the tabs below. Required A Required B Required C What was the risk premium on common stock in each year? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative values should be entered with a negative sign.. Year Risk Premium 2016 % 2017 % 2018 % 2019 % 2020 %
Stocks A and B have the following historical returns: Stock A's Returns (24.25%) 18.50 38.67 14.33 39.13 Year 2015 2016 2017 2018 2019 Assume the risk-free rate during this time was 3.5%. What are the Sharpe ratios for Stocks A and B and the portfolio over this time period using their average returns? Answers: a) Sharpe ratio for Stock A b) Sharpe ratio for Stock B 0.5332 0.8839 c) Sharpe ratio for Portfolio AB Stock B's Returns 5.50% 26.73 48.25 (4.50) 43.86 Note: enter your answers with 4 decimal places