Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns Year Stock A Stock B 2008 - 4% 28% 2009 8% 39% 2010 7% 5% 2011 - 8% - 5% 2012 3% - 8% 2013 13% 17% The return of stock A is %. (Round to two decimal places.)
Q: List the major elements that contribute to perceptions of justice and how to apply these in…
A: An organization is a one- or more-person body with a specific goal, such as a firm, an institution,…
Q: A stock's current price is $50. Suppose the two possibilities for its price in a year are $60 and…
A: The binomial option pricing model is a method of finding out the value of options in case of varying…
Q: You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend…
A: Required rate of return(rs) = Risk-free rate + Beta(Market risk premium) Required rate of return(rs)…
Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…
A: Hence The Term of Annuity is 5 years 9 Months.
Q: Today is t=0.5. Compute the present value of the forward contract to purchase a 1.5-year zero coupon…
A: t= 0.5 Today's Present value =94 To compute the present value of the forward contract to purchase a…
Q: withholding taxes). Calculate the net present valu of this project assuming the company hedged 50 of…
A: International financial management, often refers to international finance, is the administration of…
Q: Calculate the YTM for the below Bonds using the Interpolation Method:
A: Yield to maturity refers to the total return generated by a bond until it matures. Yield to maturity…
Q: a) In each of the following parts, write an expression that shows the relationship among the listed…
A: Bonds are debt instruments which are used as an instrument to raise funds. Issuer who raise debt has…
Q: Qantas Airways Ltd. currently has an EPS of $3.33 and an earnings growth rate of 11 per cent. If the…
A: Earnings per share in year 9 = Earnings per share in year 0 (current year) ×(1+growth rate) ^n…
Q: $ 7182 dollars. How much did she invest at each rate?
A: Future Value: It is the future worth of the present sum of amount and is computed by the product of…
Q: Calculate the APR of a loan for $10,025, including loan fees of $310, at 11% for 6 years. (Do not…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Flotilla Beam, the owner of the Bay City Boatyard, recently had a brilliant idea. There is a…
A:
Q: on and accounting cash flow A firm has gathered the following data fo arrent year's operations. The…
A: Operating cash flow is cash flow available after the deduction of operating expenses and adding…
Q: NTPC expected to offer a dividend of $ 8 per share next year. The historical dividend trend shows…
A: The fair value of stock can be calculated with the help of dividend growth model
Q: Replacing old equipment at an immediate cost of $50,000 and an additional outlay of $15,000 six…
A: Initial cost = $50,000 Additional cost in six years = $15,000 Annual savings for 7 years = $11,000…
Q: Having trouble, please help! You would like to have $1,000,000 when you retire in 35 years. How…
A: Future value = $ 1000000 Interest rate = 6.9% / 4 = 1.975 % [ compounded quarterly ] Number of…
Q: estion 05 a) Discuss the steps banks take to manage liquidity risk, credit risk, and interest-rate…
A: Credit, operational, market and liquidity risks are among the most serious threats that banks face.…
Q: Question 4 a. The stock market provides an annual return of 8.4%. A risky project costs £35,000 but…
A: Since multiple questions are asked , we will answer 1st question for you as per prescribed…
Q: On January 1, year 1, ABC. Corp. issued bonds as follows: USE THIS FORMULA PLEASE: bond…
A: Face Value = $3,000,000 Coupon Rate = 6% Yield = 8% Time Period = 3 Years
Q: What is the legal rights of stockholders (common and perferred).
A: Stockholder: A stockholder is also known as a corporate shareholder or an individual who owns at…
Q: You have S10,000 to invest for 90 days. Current spot rate: $1.32/£. The 90-day forward rate is…
A: Forward rate = [Spot rate * (1 + domestic interest rate) ]/ (1 + foreign interest rate).
Q: Which of the given interest rates and compounding periods would provide the best investment? (a) 10…
A: Given: Interest rate 10 1/2 percent per year, Interest rate 10 1/4 percent per year, Interest rate…
Q: recommended actions on how to address: Execution risk Strategic risk Reputation risk Process…
A: Financial risk refers to a variety of risks related with funding, such as financial transactions…
Q: Briefly explain the following by providing the meaning of the concept and list 2 benefits for each…
A: The Financial Accounting Rules Board publishes a collection of accounting principles, standards, and…
Q: An equipment with a cost of P 100 000 is expected to generate returns of P 90 000; P 60 000 and P 50…
A: Discount rate = 12% Equipment cost = P100,000 Return in year 1 = P90,000 Return in year 2 = P60,000…
Q: 1. If the bond rate is 2%, will the bond be sold at a premium or a discount? Explain your answer.
A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…
Q: eBook Problem 20-02 Fill in the table using the following information. Assets required for…
A: The problem relates to a concept of financing a project or operations thru Debt and Equity sources…
Q: Consider a call option on Stock X. The call expires in 7 months and has a strike price X=$22. The…
A: A call option is an option in which the buyer has the choice but not the obligation to buy the…
Q: If the principal is 124,860 and the future value is 182,568 what is the value of the single payment…
A: single payment present worth factor =Present value (Principal) /Future Value
Q: 1) What is the user cost of capital if the expected real interest rate is 5%, the price of capital…
A: Given that: Price of Capital=$15000 Interest Rate=5% Depreciation rate=25%
Q: A highway bridge is being considered for replacement. The new bridge would cost $X and would last…
A: The maximum acceptable price would be the cost of existing bridge and also the benefit from the new…
Q: The Minister of Finance is reviewing the depreciation regulations. Currently the Canadian Income Tax…
A: Patent Cost = $700,000 Existing depreciation on Intangible = Straight-line basis for 7 years Revised…
Q: A promissory note has a face value of 22275.00 and it has a date of issue of November 15 this year.…
A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…
Q: MTE mechanical engineering Company has a machine purchased 5 years ago at a cost of BDT 100000.00.…
A: Data given: Old Machine: Cost price = BDT 100000 Life of machine =10 years Annual depreciation = BDT…
Q: A project requires an initial outlay of P 100 000. The relevant inflows associated with the project…
A: The difference between the present value of cash inflows and outflows over time is known as net…
Q: You are an incoming college freshman taking-up a four-year course. Suppose that you want to purchase…
A: Amount required for car after 4 years (FV) = P 750,000 Interest rate (r) = 9% Number of annual…
Q: Question 8 At the end of 2020, Diego Corporation reported a $40,000 balance in its common share…
A: Treasury shares are reacquired common shares of company. Common share account means shares issued…
Q: of R Alter. Purchase CostS Annual Savings (Reduced Pollution fees Slyr) $356 000 Life (yrs)…
A: Internal rate of return is rate of return at present value of annual benefit is equal to initial…
Q: You have S10,000 to invest for 90 days. Current spot rate: S1.32/£. The 90-day forward rate is…
A: Forward rate = [Spot rate * (1 + domestic interest rate) ]/ (1 + foreign interest rate).
Q: Anna is buying a house selling for $285,000. To obtain the mortgage, Anna is required to make a 15%…
A: Mortgage Payment. The amount that the Borrower is expected to pay in respect of its Mortgage Loan on…
Q: You bought a stock on 1 January 2018 for $135.5 and below are the year-end price data and annual…
A: Given: Date Closing price Annual dividend 31-Dec-17 $135.50 $3.60 31-Dec-18 $138.20 $3.65…
Q: Based on the values in the Table below, identify the present value of benefits for Year 5 if the…
A: The present value of a project is used to measure its profitability as it shows if the project will…
Q: ABC Technologies has been growing quite rapidly in recent years and has a growth potential of 27%…
A: Value of stock using earning approach will be present value of all EPS and present value of terminal…
Q: O Corp issues 5%, 20-year bonds with a total face amount of $1,000,000. The market interest rate for…
A: The issue price of bonds will be present value of maturity amount and present value of interest at…
Q: Briefly explain the meaning of "The 200 year PML (OEP) for a book of business is $150 million."
A: PML means Probable Maximum Loss. OEP means Occurrence Exceedance Probability and it measures the…
Q: Nusajaya Sport Planet is planning to construct a Basketball Sport Arena on which has 50 courts to be…
A: Net present value is the difference between Present Value of cash Inflows and Initial Investment.
Q: The financial manager of Federal Financial leasing & investment Ltd has well-structured capital. The…
A: Given, Debenture cost is 8% Preferred stock cost is 12%
Q: The demand for Clean-Well company's product charges P30 per liter, how much revenue the company will…
A: Answer- Consumer surplus is the maximum price that a consumer of the good is willing to pay for a…
Q: How much should be invested now at 6.7% compounded semiannually to have $47,000 in 19 years?
A: The amount required to be invested today is calculated as present value
Q: SA
A: A forward currency value is the current rate of exchange for a foreign currency commercial…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Using 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.) CUISStocks 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…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
- A stock has had the following year-end prices and dividends: Year Price 0 012345 1 $ 15.00 17.18 18.18 16.68 19.02 22.13 Dividend $ 0.15 0.38 0.40 0.42 0.48 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Arithmetic return Geometric return % %Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (%) T-Bill Return (%) 2013 35.90 0.21 2014 15.20 0.21 2015 -5.10 0.21 2016 16.90 0.08 2017 25.90 0.10 a. What was the risk premium on common stock in each year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Year Risk Premium 2013 % 2014 % 2015 % 2016 % 2017 % b. What was the average risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)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 - ☑
- 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…Assume these are the stock market and Treasury bill returns for a 5-year period in the attached image: A. What was the risk premium on common stock in each year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Risk Premium 2013 % 2014 % 2015 % 2016 % 2017 % b. What was the average risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)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…
- 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 Хcks 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.…Your stock's returns for the past four years are as follows. t Return t1 19.79% t2 -0.58% t3 8.55% t4 4.68% Compute the geometric average return for this stock. Please enter your answer as a PERCENT rounded to 2 decimal places.
