Homework Answers
The total return indices are used to measure the performance of a group of components by assuming that all cash distributions are reinvested, tracking the components' price movements and bonds and commodities, dividends, interest, rights offerings and other distributions realized over a given period of time.
A price index only considers price movements (capital gains or losses) of the securities that make up the index. Both the price index and Total Return index are used to computing stock turns of many stock indexes.
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What data to use for computing stock returns? • Datastream gives four data items related to...
You have run a regression of monthly returns on a stock against monthly returns on the...
You have run a regression of monthly returns on a stock against monthly returns on the S&P 500 index, and come up with the following output: Rstock = 0.25% + 1.25 RMarket R2 = 0.60 The current one-year treasury bill rate is 4.8%, the current ten-year bond rate is 7.25% and the current thirty-year bond rate is 8%. The firm has 10 million shares outstanding, selling for $10 per share. i. What is the expected return on this stock over...
The last four years of returns for a stock are as shown : a. What is...
The last four years of returns for a stock are as shown :
a. What is the average annual return?
b. What is the variance of the stock's
returns?
c. What is the standard deviation of the
stock's returns?
Note :
Notice that the average return and standard deviation must be
entered in a percentage format. The variance must be entered in
decimal format.
A Data Table (Click on the icon located on the top-right corner of the data table...
Question #5: Measuring returns 1. What is accounting rate of return? What is the discounted cash ...
Question #5: Measuring returns 1. What is accounting rate of return? What is the discounted cash flow analysis? What are the differences, advantages, and disadvantages of each approach? 2. What is the difference between price returns and total returns of a stock? 3. Download monthly S&P 500 index from January 2000 to December 2018. Calculate monthly price return of S&P 500 index. How many months did the S&P 500 have positive return and negative return? 4. If you invested $1,000...
The last four years of returns for a stock are as shownhere a. What is the...
The last four years of returns for a stock are as shownhere
a. What is the average annual return?
b. What is the variance of the stock's returns?
c. What is the standard deviation of the stock's returns?
Note: Notice that the average return and standard deviation
must be entered in a percentage format. The variance must be
entered in decimal format.
- X Data Table (Click on the icon located on the top-right comer of the data table below...
The last four years of returns for a stock are as shown here: B. a. What...
The last four years of returns for a stock are as shown here: B. a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. a. What is the average annual return? The average return is %. (Round to two decimal places.)...
The last four years of returns for a stock are as shown here: B a. What...
The last four years of returns for a stock are as shown here: B a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Year...
The last four years of returns for a stock are as shown here a. What is...
The last four years of returns for a stock are as shown here a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note Notice that the average return and standard deviation must be entered in percentage format The vanance must be entered in decimal format - X a. What is the average annual return? iData Table % (Round to two decimal places) The...
Historical data on realized returns is often used to estimate future results. Analysts across companies use...
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. Five years of realized returns for ASA Robotics Inc. are given in the following table. Note that while ASA Robotics was started 40 years ago, its common stock has been publicly traded for the past 35 years. 2011 2012 2013 2014 2015 Stock Return 15.00% 10.20% 18.00% 25.20% 7.80% What was the average realized...
Hi, can you check these answers? Thank you! The last four years of returns for a...
Hi, can you check these answers? Thank
you!
The last four years of returns for a stock are as follows: Year 3 2 28.3% Return - 4.1% 12.3% 4.3% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? a. What is the average annual return? The average return is 10.20 %. (Round to two decimal places.) b. What is the variance of the...
Use the data given to calculate daily returns for IBM, CSCO, and, the market index. Use...
Use the data given to calculate daily returns for IBM,
CSCO, and, the market index. Use excel to calculate average daily
returns, variance, standard deviations, covariances, and the
correlations between the two stocks and the index.
Rate of Return Formula Ending Price Beginning Price Date Apr 24, 2018 Apr 23, 2018 Apr 22, 2018 Apr 21, 2018 Apr 20, 2018 Apr 17, 2018 Apr 16, 2018 Apr 15, 2018 Apr 14, 2018 IBM 169.78 170.24 165.36 164.26 166.16 160.67 163.13...
The last four years of returns for a stock are as shown :
a. What is the average annual return?
b. What is the variance of the stock's
returns?
c. What is the standard deviation of the
stock's returns?
Note :
Notice that the average return and standard deviation must be
entered in a percentage format. The variance must be entered in
decimal format.
A Data Table (Click on the icon located on the top-right corner of the data table...
Question #5: Measuring returns 1. What is accounting rate of return? What is the discounted cash flow analysis? What are the differences, advantages, and disadvantages of each approach? 2. What is the difference between price returns and total returns of a stock? 3. Download monthly S&P 500 index from January 2000 to December 2018. Calculate monthly price return of S&P 500 index. How many months did the S&P 500 have positive return and negative return? 4. If you invested $1,000...
The last four years of returns for a stock are as shownhere
a. What is the average annual return?
b. What is the variance of the stock's returns?
c. What is the standard deviation of the stock's returns?
Note: Notice that the average return and standard deviation
must be entered in a percentage format. The variance must be
entered in decimal format.
- X Data Table (Click on the icon located on the top-right comer of the data table below...
The last four years of returns for a stock are as shown here: B. a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. a. What is the average annual return? The average return is %. (Round to two decimal places.)...
The last four years of returns for a stock are as shown here: B a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Year...
The last four years of returns for a stock are as shown here a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note Notice that the average return and standard deviation must be entered in percentage format The vanance must be entered in decimal format - X a. What is the average annual return? iData Table % (Round to two decimal places) The...
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. Five years of realized returns for ASA Robotics Inc. are given in the following table. Note that while ASA Robotics was started 40 years ago, its common stock has been publicly traded for the past 35 years. 2011 2012 2013 2014 2015 Stock Return 15.00% 10.20% 18.00% 25.20% 7.80% What was the average realized...
Hi, can you check these answers? Thank
you!
The last four years of returns for a stock are as follows: Year 3 2 28.3% Return - 4.1% 12.3% 4.3% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? a. What is the average annual return? The average return is 10.20 %. (Round to two decimal places.) b. What is the variance of the...
Use the data given to calculate daily returns for IBM,
CSCO, and, the market index. Use excel to calculate average daily
returns, variance, standard deviations, covariances, and the
correlations between the two stocks and the index.
Rate of Return Formula Ending Price Beginning Price Date Apr 24, 2018 Apr 23, 2018 Apr 22, 2018 Apr 21, 2018 Apr 20, 2018 Apr 17, 2018 Apr 16, 2018 Apr 15, 2018 Apr 14, 2018 IBM 169.78 170.24 165.36 164.26 166.16 160.67 163.13...
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