(1) Periodic Returns: 10%, -5 % and 4 % , Number of Periods = 3
Compound Average Annual Return = [(1+0.1) x (1-0.05) x (1+0.04)]^(1/3) - 1 = 0.02813 or 2.813 % ~ 2.81 %
(2) Periodic Returns: 10%, - 5 % and 4 %, Number of Periods = 3, let the initial investment be $ 100
Investment Value at the end of Year 1 = 100 x 1.1 = $ 110
Investment Value at the end of Year 2 = 110 x 0.95 = $ 104.5
Investment Value at the end of Year 3 = 104.5 x 1.04 = $ 108.68
Total Return = [(108.68-100)/100] x 100 = 8.68 %
please answer those two questions 1. 2. A stock you are looking at has generated the...
please answer those two questions 1. 2. A stock you are looking at has generated the following annual returns: 10.0%, -5.0% and 4.0%. What was the standard deviation of its returns? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32). Numeric Answer: A stock has generated an annual average return of 8.0% with a standard deviation of 45.0% during the last 10 years. If the average risk-free rate was 1.6%, what was this stock's Sharpe Ratio? Round...
please answer those two questions 1. 2. You bought stock in a company at a price of $30 per share. You recently sold the stock for a price of $60 per share. While holding the stock, you received dividends of $1.10 per share. What was your total return from this investment? Answer in percent, rounded to two decimal places (e.g. 4.32%=4.32). Numeric Answer: A stock you are looking at has generated the following annual returns: 10.0%, -5.0% and 4.0%. What...
1. 2. A stock you are looking at has generated the following annual returns: 10.0%, -5.0% and 4.0%. What was the standard deviation of its returns? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32). Numeric Answer: 11.66 You are incorrect 11.66 A stock has generated an annual average return of 8.0% with a standard deviation of 45.0% during the last 10 years. If the average risk-free rate was 1.6%, what was this stock's Sharpe Ratio? Round...
A stock you are looking at has generated the following annual returns: 10.0%, -5.0% and 4.0%. What was the standard deviation of its returns? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32). Your answer
A stock you are looking at has generated the following annual returns: 13.6%, -12.1% and 7.6%. What was its compound average annual return? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32).
A stock you are looking at has generated the following annual returns: 12.9%, -10.7% and 6.9%. What was its arithmetic average annual return? Answer in percent rounded to two decimal places (e.g., 4.32% = 4.32).
A stock you are looking at has generated the following annual returns: 11.8%, -8.6% and 5.8%. What was the standard deviation of its returns? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32).
please answer those two questions 1. 2. You are creating a portfolio of two stocks. The first one has a standard deviation of 20% and the second one has a standard deviation of 50%. The correlation coefficient between the returns of the two is 0.2. You will invest 70% of the portfolio in the first stock and the rest in the second stock. What will be the standard deviation of this portfolio's returns? Answer in percent, rounded to two decimal...
please answer those two questions 1. 2. What is the CAPM required return of a stock with a beta of 2.2 if the risk-free rate is 1.5% and the expected market risk premium is 4.8%? Answer in percent, rounded to two decimal places. (e.g., 4.32% = 4.32) Numeric Answer: On Blackboard under "Course Content / Homeworks and Practice Tests" there is an Excel file titled "HW 6 Data" with monthly stock return data to be used for this question: What...
You are creating a portfolio of two stocks. The first one has a standard deviation of 21% and the second one has a standard deviation of 35%. The correlation coefficient between the returns of the two is 0.1. You will invest 40% of the portfolio in the first stock and the rest in the second stock. What will be the standard deviation of this portfolio's returns? Answer in percent, rounded to two decimal places (e.g., 4.32%=4.32).