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a. Given the following holding period returns, compute the average returns and the standard deviations for...
a. Given the following holding-period returns, compute the average returns and the standard deviations for the...
a. Given the following holding-period returns, compute the
average returns and the standard deviations for the Zemin
Corporation and for the market.
b. If Zemin's beta is 1.98 and the risk-free rate is 7
percent, what would be an expected return for an investor owning
Zemin? (Note: Because the preceding returns are based on monthly
data, you will need to annualize the returns to make them
comparable with the risk-free rate. For simplicity, you can
convert from monthly to...
(CAPM and expected returns) a Given the following holding period retums, mh compute the average rums...
(CAPM and expected returns) a Given the following holding period retums, mh compute the average rums and the standad deviations for the Zemin Coporation and for the market b. If Zemin's beta is 1.32 and the risk-free rate is 7 percent, what would be an expected returs for an investor owning Zemin? (Note Because the precedng retus are based on montly daa, you wil reod to avuaire the retums to make them comparable with the risk-fhee rate. For smplicity, ycan...
(Related to Checkpoint 8.3) (CAPM and expected returns) a. Given the following holding-period retuns, EB, compute...
(Related to Checkpoint 8.3) (CAPM and expected returns) a. Given the following holding-period retuns, EB, compute the averace returns and the standard deviations for the Sugita Corporation and for the market. f Sugita's beta is 1.46 and the risk-free rate is 9 percent, what would be an expected return for an investor owning Sugita? (Note: Because the preceding returns a them comparable with the risk-free rate. For simplicity, you can convert from monthly to yearly returns by multiplying the average...
zemin corp
a. Given the holding-period returns shown here, compute the average returns and the standarddeviations for the Zemin Corporation and for the market.MONTH ZEMIN CORP. MARKET1 6% 4%2 3 23 -1 14 -3 -25 5 26 0 2b. If Zemin’s beta is 1.54 and the risk-free rate is 8 percent, what would be an appropriate required return for an investor owning Zemin? (Note: Because the returnsof ZeminCorporation are based on monthly data, you will need to annualize the returns to makethem...
The table below provides the information of the expected returns, and the standard deviations of two...
The table below provides the information of the expected returns, and the standard deviations of two assets A and B, as well as that of the market portfolio and the risk-free asset, respectively. Asset M (Market portfolio) F(Risk-free) Expected Return Standard Deviation 20% 15 % 4% 0% 10% 8 % 24 % 22 % B Table 04 (a) On the risk-return diagram, draw the Security Market Line and show all the four assets. (Be sure to place the values and...
1. Below are the historical arithmetic average returns and standard deviations for different asset classes. Asset...
1. Below are the historical arithmetic average returns and standard deviations for different asset classes. Asset class Mean return Standard deviation T-bills 0.035 0.031 Corporate bonds 0.063 0.084 Small company stocks 0.169 0.323 Large company stocks 0.121 0.202 Assume that the returns are normally distributed. Use a standard normal table to answer the following questions. a. What is the probability that the return on corporate bonds will be less than 7%? b. What is the probability that the return on...
The average returns, standard deviations, and betas for three funds are given below along with data...
The average returns, standard deviations, and betas for three funds are given below along with data for the S&P 500 Index The risk-free return during the sample period is 6%. Fund Beta Ave 13695 Sid Dey 4096 110 C 12.4% SP350012204 30% 13395 What is the information ratio of fund A? -0614 • Not enough information to compute information ratio 0.0274 0.055 None of the other answers
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 13 % 25 % 2 31 46 3 20 -13 4 -21 -27 5 22 54 Calculate the arithmetic average return for X. Calculate the arithmetic average return for Y. Calculate the variance for X. Calculate the variance for Y. ...
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 6 % 19 % 2 24 40 3 13 -10 4 -14 -24 5 15 48 Calculate the arithmetic average return for X. Calculate the arithmetic average return for Y. Calculate the variance for X. Calculate the variance for Y. ...
Returns earned over a given time period are called realized returns. Historical data on realized returns...
Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Happy Dog Soap Inc. (HDS): Five years of realized returns for HDS are given in the following table. Remember: 1. While HDS was started 40 years ago, its common stock has been publicly traded for the past 25 years....
a. Given the following holding-period returns, compute the
average returns and the standard deviations for the Zemin
Corporation and for the market.
b. If Zemin's beta is 1.98 and the risk-free rate is 7
percent, what would be an expected return for an investor owning
Zemin? (Note: Because the preceding returns are based on monthly
data, you will need to annualize the returns to make them
comparable with the risk-free rate. For simplicity, you can
convert from monthly to...
(CAPM and expected returns) a Given the following holding period retums, mh compute the average rums and the standad deviations for the Zemin Coporation and for the market b. If Zemin's beta is 1.32 and the risk-free rate is 7 percent, what would be an expected returs for an investor owning Zemin? (Note Because the precedng retus are based on montly daa, you wil reod to avuaire the retums to make them comparable with the risk-fhee rate. For smplicity, ycan...
(Related to Checkpoint 8.3) (CAPM and expected returns) a. Given the following holding-period retuns, EB, compute the averace returns and the standard deviations for the Sugita Corporation and for the market. f Sugita's beta is 1.46 and the risk-free rate is 9 percent, what would be an expected return for an investor owning Sugita? (Note: Because the preceding returns a them comparable with the risk-free rate. For simplicity, you can convert from monthly to yearly returns by multiplying the average...
The table below provides the information of the expected returns, and the standard deviations of two assets A and B, as well as that of the market portfolio and the risk-free asset, respectively. Asset M (Market portfolio) F(Risk-free) Expected Return Standard Deviation 20% 15 % 4% 0% 10% 8 % 24 % 22 % B Table 04 (a) On the risk-return diagram, draw the Security Market Line and show all the four assets. (Be sure to place the values and...
The average returns, standard deviations, and betas for three funds are given below along with data for the S&P 500 Index The risk-free return during the sample period is 6%. Fund Beta Ave 13695 Sid Dey 4096 110 C 12.4% SP350012204 30% 13395 What is the information ratio of fund A? -0614 • Not enough information to compute information ratio 0.0274 0.055 None of the other answers
Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Happy Dog Soap Inc. (HDS): Five years of realized returns for HDS are given in the following table. Remember: 1. While HDS was started 40 years ago, its common stock has been publicly traded for the past 25 years....
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