Find the percentage standard deviation of security A’s returns based on the following information: Not using...
Find the percentage standard deviation of security A’s returns based on the following information: Not using Excel
|
Year |
Return |
|
1 |
16% |
|
2 |
38% |
|
3 |
21% |
|
4 |
(18)% |
|
5 |
8% |
Homework Answers
Ans 18.35%
| YEAR | RETURN | (X -Average Return of X)^2 |
| 1 | 16 | 9.000000 |
| 2 | 38 | 625.000000 |
| 3 | 21 | 64.000000 |
| 4 | -18 | 961.000000 |
| 5 | 8 | 25.000000 |
| Total | 65 | 1684.000000 |
| Average Return = | Total Return / NO of years | |
| 65 / 5 | ||
| 13.00 | ||
| Variance = | sum of (X -Average Return of X)^2 / no of years | |
| 1684 / 5 | ||
| 336.80 | ||
| Standard Deviation = | Square root of Variance | |
| Square root of 336.80 | ||
| 18.35 | ||
Add Answer to:
Find the percentage standard deviation of security A’s returns
based on the following information: Not using...
What is the expected standard deviation of stock A’s returns based on the information presented in...
What is the expected standard deviation of stock A’s returns
based on the information presented in the table? Answer as a rate
in decimal format so that 12.34% would be entered as .1234 and
0.98% would be entered as .0098. Note that figures in the table are
presented in decimal format, not as percentages.
What is the expected standard deviation of stock A's returns based on the information presented in the table? Answer as a rate in decimal format so...
What is the expected standard deviation of stock A’s returns based on the information presented in...
What is the expected standard deviation of stock A’s returns based on the information presented in the table? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. Note that figures in the table are presented in decimal format, not as percentages. Outcome Probability of outcome Stock A return in outcome Good 0.3 0.7 Medium 0.5 0.1 Bad ? -0.1
What is the expected standard deviation of stock A’s returns based on the information presented in...
What is the expected standard deviation of stock A’s returns based on the information presented in the table? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. Note that figures in the table are presented in decimal format, not as percentages. Outcome Probability of outcome Stock A return in outcome Good 0.3 0.4 Medium 0.4 0.1 Bad ? -0.4 Rogelio’s portfolio is worth 73,600 dollars and has...
The higher the standard deviation of returns on a security, the _____ the expected rate of...
The higher the standard deviation of returns on a security, the _____ the expected rate of return and the _____ the risk. 1) higher; lower 2) lower; lower 3) lower; higher 4) You cannot determine anything about the expected rate of return from the standard deviation. 5) higher; higher
Use the following information to answer the question below Analysts Estimated Return Standard Deviation 8% Security...
Use the following information to answer the question below Analysts Estimated Return Standard Deviation 8% Security Beta 9.0% 1.1 10.0% 14% 16% 0.8 1.3 16.4% Risk Free Rate 2%; and Expected Return of Market 12% Based on CAPM, which security has the highest expected return? Security A Security B Security C They all have the same expected return Not enough information to answer the question. |CAC Use the following information to answer the question below Analysts' Estimated Return Standard Security...
a. Calculate the expected return for each security. b. Calculate the standard deviation of returns for...
a. Calculate the expected return for each security.
b. Calculate the standard deviation of returns for each
security.
c. Compare Stock A with Stocks B and C. Is Stock A preferred
over the others?
d. Using your result in parts a and b, compute the following
probabilities:
Stock A makes a return more than 18.9%
Stock B makes a return less than 1.3%
Stock C makes a return between 6.1% and 16.1%
2) You are considering the...
NEED EXCEL SOLUTION PLEASE: (EXCEL FORMULA) Suppose we have the following returns for the market and...
NEED EXCEL SOLUTION PLEASE: (EXCEL FORMULA) Suppose we have the following returns for the market and a stock: Year Market return Stock return 1 18% 7% 2 27% 25% 3 5% 21% 4 13% 4% 5 -17% -16% 6 6% 19% 7 -21% -38% 8 34% 29% 9 19% 15% 10 11% 16% What is the covariance and correlation of the returns between this stock and the market? Covariance: Use Covar Function Correlation: Use Correl Function Beta: Use Slope Function...
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. ...
Stock A’s expected return and standard deviation are E[rA] = 8% and σA= 15%, while stock...
Stock A’s expected return and standard deviation are E[rA] = 8% and σA= 15%, while stock B’s expected return and standard deviation are E[rB] = 12% and σB= 21%.  a. Determine the expected return and standard deviation of the return on a portfolio with weights wA=.35 and wB=.65 for the following alternative values of correlation between A and B: pAB=0.6 and pAB= -0.4. b. Assume now that pAB=-1.0 and find the portfolio p of stocks A and B that...
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 10 % 21 % 2 28 42 3 17 -9 4 -18 -23 5 19 50 Requirement 1: (a) Calculate the arithmetic average return for X 14%, 9.07%, 13.66%, 11.20%, 12.66% b) Calculate the arithmetic average return for Y. 19.76%, 16.20%, 18.31%, 20.25%, 13.12% Requirement 2: (a) Calculate the variance for X. (Do not round intermediate...
What is the expected standard deviation of stock A’s returns
based on the information presented in the table? Answer as a rate
in decimal format so that 12.34% would be entered as .1234 and
0.98% would be entered as .0098. Note that figures in the table are
presented in decimal format, not as percentages.
What is the expected standard deviation of stock A's returns based on the information presented in the table? Answer as a rate in decimal format so...
Use the following information to answer the question below Analysts Estimated Return Standard Deviation 8% Security Beta 9.0% 1.1 10.0% 14% 16% 0.8 1.3 16.4% Risk Free Rate 2%; and Expected Return of Market 12% Based on CAPM, which security has the highest expected return? Security A Security B Security C They all have the same expected return Not enough information to answer the question. |CAC Use the following information to answer the question below Analysts' Estimated Return Standard Security...
a. Calculate the expected return for each security.
b. Calculate the standard deviation of returns for each
security.
c. Compare Stock A with Stocks B and C. Is Stock A preferred
over the others?
d. Using your result in parts a and b, compute the following
probabilities:
Stock A makes a return more than 18.9%
Stock B makes a return less than 1.3%
Stock C makes a return between 6.1% and 16.1%
2) You are considering the...
Most questions answered within 3 hours.
-
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 33 minutes ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 1 hour ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 1 hour ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 3 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 3 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 4 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 6 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 6 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 6 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 6 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 6 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 6 hours ago