Question

Problem 1 (14 marks): Consider the following historical returns on two investments A and B. The average risk-free rate during
0 0
Add a comment Improve this question Transcribed image text
Answer #1

fir =B249-$B$255 C249 A D Deviation from Square of A deviation Year 248 mean 249 5.00% 0.001 2011 -0.036 20.00% 250 2012 0.11

*Please rate thumbs up

Add a comment
Know the answer?
Add Answer to:
Problem 1 (14 marks): Consider the following historical returns on two investments A and B. The...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The historical returns for two investments—A and B— are summarized in the following table for the...

    The historical returns for two investments—A and B— are summarized in the following table for the period 2013 to 2017, A B Year Rate of Return 2013 22.322.3​% 12.412.4​% 2014 7.27.2​% 14.514.5​% 2015 14.114.1​% 17.817.8​% 2016 28.628.6​% 18.118.1​% 2017 10.310.3​% 19.719.7​% Average 16.516.5​% 16.516.5​% . Use the data to answer the questions that follow. a. On the basis of a review of the return​ data, which investment appears to be more​ risky? Why? b. Calculate the standard deviation for each​...

  • Stocks A and B have the following historical returns: Year Stock A's Returns, A Stock B's...

    Stocks A and B have the following historical returns: Year Stock A's Returns, A Stock B's Returns, re 2011 - 23.40% 15.7094 2012 31.50 29.30 2013 17.75 28.40 2014 - 1.50 - 12.80 2015 29.00 24.15 .. Calculate the average rate of return for stock A during the period 2011 through 2015. Round your answer to two decimal places. Calculate the average rate of return for stock B during the period 2011 through 2015. Round your answer to two decimal...

  • You are analyzing the historical performance of a stock. The annual returns for the last ten...

    You are analyzing the historical performance of a stock. The annual returns for the last ten years are shown below. Year Ann Ret 2018 12% 2017 9% 2016 ‐5% 2015 3% 2014 ‐13% 2013 6% 2012 20% 2011 0% 2010 ‐6% 2009 14% Calculate the average annual return, the variance and standard deviation of this stock over the ten‐year period.

  • REALIZED RATES OF RETURN Stocks A and B have the following historical returns: Stock B's Returns,...

    REALIZED RATES OF RETURN Stocks A and B have the following historical returns: Stock B's Returns, rs Stock A's Returns, rA Year - 13.50 % -15.00% 2011 19.60 31.75 2012 32.10 12.00 2013 -10.80 -4.00 2014 24.85 27.50 2015 a. Calculate the average rate of return for stock A during the period 2011 through 2015. Round your answer to two decimal places. % Calculate the average rate of return for stock B during the period 2011 through 2015. Round your...

  • Stocks A and B have the following historical returns Year Stock A'sReturns, A Stock B's Returns,...

    Stocks A and B have the following historical returns Year Stock A'sReturns, A Stock B's Returns, rB 2011 2012 2013 2014 2015 23.00%, 26.75 15.75 3.50 29.50 1 7.50% 16,80 26.40 10.40 30.20 a. Calculate the average rate of retum for stock A during the period 2011 through 2015. Round your answer to two decimal places. Calculate the average rate of retum for stock 8 during the period 2011 through 2015. Round your answer to two decimal places, b Assume...

  • REALIZED RATES OF RETURN NEED TO BE DONE USING EXCEL!!!! Stocks A and B have the following historical returns: Year S...

    REALIZED RATES OF RETURN NEED TO BE DONE USING EXCEL!!!! Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2011 - 24.00% - 12.10% 2012 20.50 23.70 2013 17.75 31.90 2014 - 5.25 - 11.70 2015 25.75 2.95 Calculate the average rate of return for stock A during the period 2011 through 2015. Round your answer to two decimal places. % Calculate the average rate of return for stock B during...

  • Historical Realized Rates of Return Stocks A and B have the following historical returns: Year 2012...

    Historical Realized Rates of Return Stocks A and B have the following historical returns: Year 2012 -23.00% -17.10% 2013 26.00 27.00 2014 10.75 20.80 2015 -2.25 -13.60 2016 31.50 25.90 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...

  • 7-20. Historical Returns: Expected and Required Rates of Return You have observed the following returns over...

    7-20. Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year 2011 2012 2013 2014 2015 Stock X Stock Y Market 14% 13% 12% 19 7 10 - 16 -5 -12 3 s11 20 11 15 - Assume that the risk-free rate is 4%, the market risk premium is 5%, the beta for Stock X is 1.50, and the beta for Stock Y is 0.46: a. What are the required rates of return...

  • 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...

  • Use the following historical stock returns for GAF, Inc. to answer questions 19 and 20: Year...

    Use the following historical stock returns for GAF, Inc. to answer questions 19 and 20: Year Annual Stock Return 2005 13% 2006 1% 2007 -6% 2008 19% 2009 39% 2010 46% 2011 6% 2012 -4% 2013 14% 2014 -6% 2015 8% 2016 0% 2017 16% 2018 22% 19. What was the average annual historical return for GAF, Inc. over the 14 year period? 20. What was the standard deviation of returns for GAF, Inc. stock over the 14 year time...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT