Homework Answers
| A | B | C | D | ||
| 1 | Year | Stock Market Return | T-Bill Return | Risk Premium(=Stock Market Return-T bill return) | |
| 2 | 2013 | 34.20% | 0.14 | 20.20% | |
| 3 | 2014 | 13.90% | 0.14 | -0.10% | |
| 3 | 2015 | -3.80% | 0.14 | -17.80% | |
| 4 | 2016 | 14.80% | 0.09 | 5.80% | |
| 6 | 2017 | 24.30% | 0.11 | 13.30% | Excel formula |
| Average Return | 4.28% | average(D2:D6) | |||
| Standard Deviation | 14.52% | STDEV(D2:D6) |
Add Answer to:
Assume these are the stock market and Treasury bill returns for a 5-year period: Year 2013...
Check my work Assume these are the stock market and Treasury bill returns for a 5-year...
Check my work Assume these are the stock market and Treasury bill returns for a 5-year period: Year 2013 2014 2015 2016 2017 Stock Market Return (%) 31.90 11.20 -1.90 13.30 21.60 T-Bill Return ($) 0.04 0.04 0.04 0.22 0.24 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.)...
Assume these are the stock market and Treasury bill returns for a 5-year period: Year 2011...
Assume these are the stock market and Treasury bill returns for a 5-year period: Year 2011 2012 2013 2014 2015 Stock Market T-Bill Return Return (%) (%) -37.03 1.80 28.60 0.30 16.86 0.14 1.28 0.06 16.36 0.08 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 2011 2012 Risk Premium (39.10) % 28.30% 16.721% 1.22 % 16.28 % 2013 2014...
What is 9. Here are stock market and Treasury bill percentage returns between 2006 and 2010:...
What is 9. Here are stock market and Treasury bill percentage returns between 2006 and 2010: T-Bill Return Year 2006 2007 2008 2009 2010 Stock Market Return 15.770 5.610 -37.230 28.300 17.160 4.800 4.660 1.600 0.100 0.120 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? d. What is the coefficient of variation?
You have observed the following returns over time YearStock X Stock Y Market 2012 2013 2014...
You have observed the following returns over time YearStock X Stock Y Market 2012 2013 2014 2015 2016 13% 1496 19 16 12% 10 12 20 15 Assume that the risk-free rate is 6% and the market risk premium is 5%. a. What are the betas of Stocks X and Y? Answer b. What are the required rates of return on Stocks X and Y? Answer C. What is the required rate of return on a portfolio consisting of 80%...
Stocks A and B have the following historical returns: Year 2012 -20.10% -12.60% 2013 20.50 24.30...
Stocks A and B have the following historical returns: Year 2012 -20.10% -12.60% 2013 20.50 24.30 2014 17.25 30.90 2015 -3.25 -10.10 2016 29.50 11.40 Calculate the average rate of return for each stock during the 5-year period. 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 have been the realized rate of return on the portfolio...
Year 2014 2015 Stock A's Returns, ra (19.70%) 23.00 13.75 (2.25) 25.25 Stock B's Returns, le...
Year 2014 2015 Stock A's Returns, ra (19.70%) 23.00 13.75 (2.25) 25.25 Stock B's Returns, le (14.80%) 17.40 36.20 (7.60) 8.85 2016 2017 2018 a. Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A: % ol 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...
ou have observed the following returns over time: Year Stock X Stock Y Market 2014 13...
ou have observed the following returns over time: Year Stock X Stock Y Market 2014 13 % 13 % 14 % 2015 20 5 9 2016 -16 -2 -12 2017 3 3 3 2018 24 12 16 Assume that the risk-free rate is 7% and the market risk premium is 5%. What are the betas of Stocks X and Y? Do not round intermediate calculations. Round your answers to two decimal places. Stock X: Stock Y: What are the required...
20. Problem 8.20 (Realized Rates of Return) eBook Stocks A and B have the following historical returns: Year Stock A's...
20. Problem 8.20 (Realized Rates of Return) eBook Stocks A and B have the following historical returns: Year Stock A's Returns, A Stock B's Returns, rB 2013 - 23.30% - 15.50% 2014 20.10 20.00 10.00 2015 31.60 - 12.80 2016 - 2.50 2017 27.25 8.05 a. Calculate the average rate of return for stock A during the period 2013 through 2017. Round your answer to two decimal places. Calculate the average rate of return for stock B during the period...
Assume the risk-free rate is 4.1% and expected market return is 10.2%. Suppose that you have...
Assume the risk-free rate is 4.1% and expected market return is 10.2%. Suppose that you have observed the following returns over time: Year Stock A Stock B Market 2012 5% 14% 12% 2013 7% 15% 10% 2014 -9% -17% -12% 2015 1.5% 3% 1% 2016 10% 18% 15% 2017 17.5% 24.5% 20% What are the betas of Stock A and Stock B? What are the required rate of returns of Stocks A and B? What is the required rate of...
Stock A beta is 1.2 and the risk premium of the stock in the same industry...
Stock A beta is 1.2 and the risk premium of the stock in the same industry is 5.5%. If the risk free rate of return is 3.5%, calculate the expected return on stock A. 2) Given the following stock return over a 5-year period, calculate the geometric return. Year 2013 2014 2015 2016 2017 Return 10% -2% 5% 8% 11%
Check my work Assume these are the stock market and Treasury bill returns for a 5-year period: Year 2013 2014 2015 2016 2017 Stock Market Return (%) 31.90 11.20 -1.90 13.30 21.60 T-Bill Return ($) 0.04 0.04 0.04 0.22 0.24 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.)...
Assume these are the stock market and Treasury bill returns for a 5-year period: Year 2011 2012 2013 2014 2015 Stock Market T-Bill Return Return (%) (%) -37.03 1.80 28.60 0.30 16.86 0.14 1.28 0.06 16.36 0.08 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 2011 2012 Risk Premium (39.10) % 28.30% 16.721% 1.22 % 16.28 % 2013 2014...
What is 9. Here are stock market and Treasury bill percentage returns between 2006 and 2010: T-Bill Return Year 2006 2007 2008 2009 2010 Stock Market Return 15.770 5.610 -37.230 28.300 17.160 4.800 4.660 1.600 0.100 0.120 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? d. What is the coefficient of variation?
You have observed the following returns over time YearStock X Stock Y Market 2012 2013 2014 2015 2016 13% 1496 19 16 12% 10 12 20 15 Assume that the risk-free rate is 6% and the market risk premium is 5%. a. What are the betas of Stocks X and Y? Answer b. What are the required rates of return on Stocks X and Y? Answer C. What is the required rate of return on a portfolio consisting of 80%...
Year 2014 2015 Stock A's Returns, ra (19.70%) 23.00 13.75 (2.25) 25.25 Stock B's Returns, le (14.80%) 17.40 36.20 (7.60) 8.85 2016 2017 2018 a. Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A: % ol 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...
20. Problem 8.20 (Realized Rates of Return) eBook Stocks A and B have the following historical returns: Year Stock A's Returns, A Stock B's Returns, rB 2013 - 23.30% - 15.50% 2014 20.10 20.00 10.00 2015 31.60 - 12.80 2016 - 2.50 2017 27.25 8.05 a. Calculate the average rate of return for stock A during the period 2013 through 2017. Round your answer to two decimal places. Calculate the average rate of return for stock B during the period...
Most questions answered within 3 hours.
-
In C++ Programming, Try using loops only.
This lab demonstrates the use of the While Loop...
asked 10 minutes ago -
Effect of DCMU and sodium azide on Chlamydomonas? We did an
experiment where we had Chlamydomonas...
asked 50 minutes ago -
1a) According to the ideal gas law, _______________.
a. a gas has infinite volume at absolute...
asked 2 hours ago -
Oakdale Fashions, Inc. had $245,000 in 2018 taxable income.
Using the tax schedule in Table 2.3...
asked 2 hours ago -
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 4 hours ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 4 hours ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 4 hours ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 5 hours ago -
39.4% of US homes continue to use a landline in addition to cell
phone service. 3...
asked 5 hours ago -
Starting with benzene, synthesize 1-phenyl-1-butyne.
Show intermediates and reagents.
asked 6 hours ago -
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 7 hours ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 7 hours ago