the ata in the following 曲 a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. Data table imate the (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2010 2011 2013 - 10% 20% - 5% Stock A Stock B 21% 7% - 3% 2012 5% 30% 2014 2% -8% 2015 9% 25%
Q: Consider a 30-year $200,000 5/1 ARM having a 2.6% margin and based on the CMT index Assume that it…
A: The cost of borrowing money is called interest, and it is typically stated as a percentage, such as…
Q: Esson Company performed work in the amount of $5,000 this period and collected the full amount on…
A: In accounting, when a company performs work and collects the full amount on the date the work was…
Q: Eurobonds pay coupons annually. Suppose a Eurobond matures in six years, the annual coupon is 8%,…
A: Here,Par Value of Bond is $1,000Annual Coupon Rate is 8%YTM is 8%Time to Maturity is 6 years
Q: 8. Company ABC invests in a long-term project that will start generating cash flows 10 years from…
A: To determine whether a project is a good investment or not, we compute the net present value of the…
Q: ou currently have $200 in the bank which pays a 5% pa interest rate. Apples currently cost $1 each…
A: Due to inflation the purchasing power of the money decreases and hence real interest rate after…
Q: Land is purchased for $75,000. It is agreed for the land to be paid for over a 5-year period with…
A: Principal = $75,000Number of years = 5Interest rate = 12%Let P is the payment done in year 1Every…
Q: This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving…
A: Time Until retirement = tur = 30 YearsAmount Withdraw after retirement = w = $90,000Time After…
Q: In comparing goods and services, service quality is harder to measure. O goods are all…
A: Goods are tangible products that can be bought, sold, and possessed, such as clothing, electronics,…
Q: Related to Checkpoint 9.3) (Bond valuation) Doisneau 18-year bonds have an annual coupon interest of…
A: Price of bond is the sum of present value of coupon payment and present value of the par value of…
Q: 2. As information becomes increasingly available additional storage is needed for the handling of…
A: The concept of time value of money is based on the premise that money has time value. A dollar today…
Q: Five years ago, you entered into a loan agreement to borrow $100,000. The loan was to be paid off…
A: We need to use loan amortization formula below to calculate monthly payment.whereP=Loann=number of…
Q: Use the following information to answer this question. Windswept, Incorporated 2022 Income Statement…
A: Net Income = ni = $567 millionCommon Stock = cs = $2900 millionRetained Earnings = re = $710 million
Q: If a company develops in-house a highly profitable treatment and secures a patent for it, the asset…
A: Intangible asset is a non physical asset that lacks a physical presence but holds value for a…
Q: The portfolio consists of 40% BHP and 60% WOW. Boom Moderate Recession Probability 30% 50% 20%…
A: A portfolio is the combination of different asset class in one basket. The aim for creating…
Q: Assuming the rates of return associated with a given asset investment are normally distribu The…
A: Standard is quantative measure of the risk of the stock and is measured as the deviation from the…
Q: Using the data in the following table, calculate the return for investing in Boeing stock (BA) from…
A: Variables in the question: Historical Stock and Dividend Data for Boeing stock (BA)DatePrice…
Q: The following table show's a credit cardholder's transactions for his credit card with statement…
A: A credit card is a financial tool and payment method that allows cardholders to make purchases on…
Q: What is the value today of $500 per month forever, with the first $500 payment occurring two months…
A: Monthly payment (C) = $500Monthly interest rate (r) = 0.01 (i.e. 0.12 / 12)Present value = ?First…
Q: (Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will…
A: Here,Par Value of Bond is $1,000Annual Coupon Rate is 9%Payment Period is Semi AnnualTime to…
Q: A refinery has 250 tons of CPO on hand. This will be held over the following three months. He aims…
A: Hedging is a risk management strategy employed by individuals or organizations to mitigate potential…
Q: Shoe Building Inc. is considering a three-year project that will require an initial investment of…
A: NEt present value is the capital budgeting technique used to evaluate the various alternative of…
Q: Mike wants to invest in a business in the manufacturing sector. He needs to understand the value of…
A: Current dividend = d0 = N$2.50Rate of return = r = 12%
Q: the best way to calculate the appropriate Discount Rate
A: In the valuation of the companies there is need of discount rate to calculate net present value of…
Q: Richa is looking at the results of a Capital Investment Appraisal. The report shows that, assuming a…
A: Capital budgeting, often referred to as investment assessment, seems to be focused on organizational…
Q: A 20-year government coupon bond has a face value of $1,000 and a coupon rate of 6% paid annually at…
A: Bond's PVwould be present value of interest annuity & maturity amount at market rate of…
Q: great lakes clinic has been asked to provide exclusive healthcare services for next year's world…
A: The internal rate of return is a capital budgeting tool that is used to find out the rate of return…
Q: You are considering buying a house. The home is currently listed for $750,000. Terms for the loan…
A: To calculate the monthly mortgage payment, use the formula for a fixed-rate mortgage:Where:M =…
Q: Robert has inherited some money from his great-grandfather. He will get $5,533.00 when he graduates…
A: We can use the future value formula for compound interest:FV=P(1+r)nWhere: FV = Future value P =…
Q: ease term x annual rental x lease incentive= ? Lease term: 5 years NLA: 200m2 Face rent: $500M2…
A: Given:Lease term = 5 yearsNLA (Net Lettable Area) = 200 m^2Face rent = $500/m^2 PA (Per Annum)Lease…
Q: An investor buys a European call option at a price of 7.6 yuan. The stock price is 52 yuan and the…
A: Option payoff refers to the profit or loss an investor realizes from exercising or trading an…
Q: Starting on her 35th birthday, a woman saves $200 per month with a view to retiring on her 50th…
A: Here,CurrentAge is 35 yearsRetirement Age is 50 yearTime Period of Savings in month will…
Q: 1. A certain corporation listed their sales in 100s as 2400. What was their actual volume in…
A: Companies have different methods of expressing sales and each company has its own method of…
Q: Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a…
A: Net present value is a capital budgeting method to determine the present worth of the future earings…
Q: (Inflation and interest rates) Assume the expected inflation rate is 4.1 percent. If the current…
A: A financial product's declared or marketed interest rate, such as that on a loan, bond, or savings…
Q: You want your portfolio beta to be .95. Currently, your portfolio consists of $4,000 invested in…
A: Here,Beta of Stock A 1.26Beta of Stock B is 0.94Beta of Required Asset is 1.74Beta of Risk Free…
Q: Your portfolio is made up of R50 000 invested in a share with a beta of 1,8, R100 000 invested in a…
A: Beta is risk related to the overall risk of the market and it shows the volatility in the stock with…
Q: Use the following information to answer this question. Windswept, Incorporated 2022 Income Statement…
A: Cash = c = $170 millionAccounts Receivable = ar = $720 millionAccounts Payable = ap = $1160 million
Q: In 2012, an Action Comics No. 1, featuring the first appearance of Superman, was sold at auction for…
A: The formula for calculating the future value is The annual increase in the value of the comic book…
Q: Assume that a $1,000,000 per value, semiannual coupon US Treasury note with two years to maturity…
A: Price of the bond is the PV of all future coupons and par value discounted at the YTM. We can…
Q: Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be…
A: Decision-makers may more readily evaluate options with the help of annual worth analysis, which…
Q: Using time value of money tables, calculate the following: The amount a person would have to…
A: Present value is the value of a future cash flow amount as of today. We receive cash flows at…
Q: Arithmetic and Geometric Returns (LO1) A stock has had returns of 9%,21%,32%,-18%,27%, and -12% over…
A: YearsStock's Returns19.00%221.00%332.00%4-18.00%527.00%6-12.00%Required: a) Average return=?b)…
Q: For the same property with net operating cash flows of $15,000, $16,000, $20,000, $22,000, and…
A: IRR is the break even rate of return at which present value of cash flow is equal to the initial…
Q: An investor makes a deposit today and earns an average continuous return (force of interest) of 6.5%…
A: Compound interest refers to the method of interest calculation where the interest earned in a period…
Q: Mullet Technologies is considering whether or not to refund a $75 million, 13% coupon, 30-year bond…
A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or…
Q: QUESTION 9 Vinnie has lost his job and was unable to pay his mortgage to Mortgage Nation. Vinnie…
A: Understanding Mortgage Remedies: Exploring Different ScenariosMortgages are legal agreements that…
Q: You have borrowed $1,000 from a friend to pay for unforeseen car repairs, with an agreement to pay…
A: Borrowed amount (P) = $1,000Daily interest rate (r) = 0.000493150684931507 (i.e. 0.18 / 365)Period…
Q: What is the future value (at the end of 8 years) of an annuity that pays $700 a quarter over 8 years…
A: Future value is an estimate of future cash values that may be received at a future date,…
Q: 17 NU YU announced today that it will begin paying annual dividends. The first dividend will be paid…
A: The dividend discount model (DDM), a mathematical technique for predicting the price of a company's…
Q: Mullet Technologies is considering whether or not to refund a $75 million, 13% coupon, 30-year bond…
A: The value of a project, investment, or any set of cash flows is estimated using net present value…
Step by step
Solved in 3 steps with 6 images
- Using the data in the following table,, estimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. a. Estimate the average return and volatility for each stock. The average return of stock A is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2010 2011 20% 2013 - 1% - 13% Stock A Stock B 20% 12% - 9% Print 2012 8% 9% C Done 2014 4% - 9% 2015 11% 27% - XUsing the data in the following table,, estimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. a. Estimate the average return and volatility for each stock. The average return of stock Ais %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2010 2011 2013 Stock A - 5% 17% - 6% Stock B 29% 21% - 1% 2012 7% 4% 2014 1% - 15% 2015 13% 20%Directions: Compute the returns, average of returns and standard deviation of the following stocks and the PSEI. 1. 2. AGI SM Year Stock Return x x (x--x)² Year Stock Return x x (x-x)² Price Price 30/1/2014 27.100 30/1/2014 704.500 28/2/2014 30.000 28/2/2014 694.000 31/3/2014 28.500 31/3/2014 705.000 30/4/2014 31.150 30/4/2014 725.000 30/5/2014 29.650 30/5/2014 786.000 30/6/2014 29.100 30/6/2014 816.000 31/7/2014 26.350 31/7/2014 797.000 29/8/2014 24.600 29/8/2014 772.000 30/9/2014 26.000 30/9/2014 803.500 31/10/2014 25.300 31/10/2014 783.500 28/11/2014 24.800 28/11/2014 804.500 29/12/2014 22.550 29/12/2014 815.000 PSEI Year Stock Return x X (x-X)? 30/6/2014 6,844.31 Price 31/7/2014 6,864.82 30/1/2014 6,041.19 29/8/2014 7,050.89 3. 28/2/2014 6,424.99 30/9/2014 7,283.07 31/10/2014 7,215.73 31/3/2014 6,428.71 28/11/2014 7,294.38 30/4/2014 6,707.91 29/12/2014 7,230.57 30/5/2014 6,647.65
- Using the data in the following table,, estimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. a. Estimate the average return and volatility for each stock. The average return of stock A is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A 2010 2011 2012 2013 2014 2015 - 1% 6% 2% -5% 4% 6% Stock B 20% 9% 8% -3% - 5% 21% Print Done ☑ ClearUsing the data in the following table, E, calculate the volatility (standard deviation) of a portfolio that is 55% invested in stock A and 45% in stock B. The volatility of the p Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A 2010 2011 2012 2013 2014 2015 -14% 11% 4% -10% 2% 12% Stock B 25% 33% 13% -3% -13% 26% Print Done - XUsing the data in the following table, estimate the average return and volatility for each stock. (Click on the following icon in order to copy its contents into a spreadsheet) Realized Returns Year 2008 2009 2010 2011 2012 2013 Stock A -1% 13% 3% -3% 5% 11% Stock B 17% 20% 11% -3% -3% 32% The return of stock A is%. (Round to two decimal places.) CUIS
- Using the data in the following table, calculate the volatility (standard deviation) of a portfolio that is 60% invested in stock A and 40% in stock B. The volatility of the portfolio is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A Stock B 2010 2011 2012 2013 2014 2015 -10% 19% 4% -3% 5% 12% 19% 39% 24% -8% -8% 35% Print Done ХUsing the data in the following table, calculate the volatility (standard deviation) of a portfolio that is 68% invested in stock A and 32% in stock B. The volatility of the portfolio is ☐ %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2010 2011 2012 2013 2014 2015 Stock A -6% 20% 3% - 1% 5% 15% Stock B 17% 4% 1% -1% - 12% 25% Print Done - ☑Using the data in the following table, The average annual return for stock A is calculated the volatility (standard deviation) of a portfolio that is 35% invested in stock A and 65% invested in stock B. %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A 2010 2011 2012 2013 2014 2015 - 1% 5% 5% - 3% 5% 5% Stock B 30% 38% 20% - 2% - 5% 28% Print Done - ☑
- Directions: Compute the total returns, the average of returns, and the standard deviation of the following stocks: 1) 2) EGRH Inc. MP, Ltd. STOCK RETURN AVERAGE OF YEA AVERAGE OF RETURNS (x) YEAR STOCK RETURN PRICE (x₁) PRICE RETU Jan-2021 Po Feb-2021 P8.6 Jan-2021 PO. Feb-2021 PO.090 Mar-2021 P0.097 Apr-2021 PO.189 May-2021 PO.164 Mar-2021 P9.14 Apr-2021 P13.30 May-2021 P13 Jun-2021 P60 Jul-2021 16.94 Jun-2021 P0.495 Jul-2021 PO.28 Aug-2021 PO Sep-2021 90 Aug-202 P13.70 Sep-2 P14.88 Oct-2021 0.375 Oct 21 P15.30 Nov-20 PO.325 N2021 P14.30 Dec-2 PO.330 ec-2021 P15.52 3) SD (8) GSM Inc. STOCK YEAR PRICE Jan-2021 P57.70 Feb-2021 P52.90 Mar-2021 P50.95 Apr-2021 P58.25 May-2021 P74.05 Jun-2021 P94.75 Jul-2021 P85.00 Aug-2021 P105.00 Sep-2021 P114.00 Oct-2021 | P101.00 Nov-2021 P100.40 Dec-2021 P113.80 SD (8) = RETURN (x₁) -x)² AVERAGE OF RETURNS (x-x)² (x) SD (8) = ACEE, Inc. YEAR STOCK RETURN PRICE (x₁) Jan-2021 P13.56 Feb-2021 P20.80 Mar-2021 P22.50 Apr-2021 P18.90 May-2021 P17.00…You are given the following information concerning a stock and the market Year 2017 2018 2019 2020 2021 2022 Returns Market 18% 11 12 -14 37 15 Correlation Beta a. Calculate the average return and standard deviation for the market and the stock. Note: Use Excel to complete the problem. Enter your answers as a percent rounded to 2 decimal places. Average return Standard deviation Stock 34% 27 3 -21 16 22 Market % Stock % % b. Calculate the correlation between the stock and the market, as well as the stock's beta. Note: Use Excel to complete the problem. Round your correlation answer to 2 decimal places and beta answer to 4 decimal places.Directions: Compute the total returns, the average of returns, and the standard deviation of the following stocks: 2) 1) EGRH Inc. DMP, Ltd. AVERAGE OF RETURNS (XI-X)² (x) YEAR AVERAGE OF RETS STOCK RETURN RICE YEA (x₁) Jan-2021 P8.30 Feb-2021 P8.60 Jan-2021 P0.088 Feb-2021 P0.090 Mar-2021 P0.097 Apr-2021 PO.189 May-2021 PO.164 Mar-2021 P9.14 Apr-2021 P13.30 May-2021 P13 Jun-2021 P0.495 Jun-2021 P 0 Jul-2021 PO.280 Jul-2021 6.94 Aug-2021 P0.455 Aug-202 P13.70 Sep-2021 P0.390 Sep-2 P14.88 Oct-2021 P0.375 0 21 P15.30 Nov-2021 PO.325 -2021 P14.30 Dec-2021 P0.330 Dec-2021 P15.52 SD (8) = 3) STOCK RETURN PRICE (x₁) GSM Inc. YEAR Jan-2021 P57.70 Feb-2021 P52.90 Mar-2021 P50.95 Apr-2021 P58.2 May-2021 P7 05 Jun-2021 34.75 Jul-2021 P85.00 Aug-20 P105.00 Sep-21 P114.00 O 2021 P101.00 N-2021 P100.40 Dec-2021 P113.80 SD (8) = STOCK RETURN CE (x₁) AVERAGE OF RETINS ²) (x₁-x)² SD (8) = ACEE, Inc. YEA Jan-2021 P156 Feb-2021 P20.80 Mar-2021 P22.50 Apr-2021 P18.90 May-2021 P17 Jun-2021 P76 Jul-2021…