An investment earned the following returns for the years 2013 through 2016:20%, -5%, 35%, and 10%....
An investment earned the following returns for the years 2013 through 2016:20%, -5%, 35%, and 10%. What is the variance of returns for this investment? Select one: a. 0.0283 b. 0.0292 c. 0.1747 d. 0.2987 e. 0.0892
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An investment earned the following returns for the years 2013
through 2016:20%, -5%, 35%, and 10%....
In four of the last five years, your investment earned you the following returns: 15%, -22%,...
In four of the last five years, your investment earned you the following returns: 15%, -22%, 4%, and 41%. The average return earned over this period was -5%. Calculate the standard deviation of the stock’s returns over the last 5 years. (Hint: round to six places after decimal)
MCD recorded stock returns equal to 5%, 6%, 7%, 8%, and 9%, in years 2014, 2015,...
MCD recorded stock returns equal to 5%, 6%, 7%, 8%, and 9%, in years 2014, 2015, 2016, 2017, and 2018, in the same respective order. What is the average return of MCD over this time period? Select one: a. 7% b. 4% C. 35% d. 8% A portfolio consisting of the 500 largest companies in the market, with equal proportions invested in each company, will have close to Select one: a. Zero firm-specific risk. b. Zero risk. C. Zero market...
5. Assume that an investment is forecasted to produce the following returns: a 20% probability of...
5. Assume that an investment is forecasted to produce the following returns: a 20% probability of a 12% return; a 50% probability of a 16% return; and a 30% probability of a 19% return. What is the standard deviation of return for this investment? A) 5.89% B) 16.1% C) 2.43% D) 15.7% 6. Answer the questions below using the following information on stocks A, B, and C. Expected Return Standard Deviation Beta 20% 12% 1.8 21% 10% 2.2 10% 10%...
1. What is the approximate variance of returns if over the past 3 years an investment...
1. What is the approximate variance of returns if over the past 3 years an investment returned 8.0%, -12.0%, and 15.0%? A. 31 B. 131 C. 182 D. 961 2. What is the approximate standard deviation of returns if over the past 4 years an investment returned 8.0%, -12.0%, -12.0%, and 15.0%? A. 9.26% B. 10.26% C. 11.26% D. 12.01% 3. A proposed capital project will cost $20 million and generate $4 million annually in after-tax cash flows for 10 years....
A company invested $150,000 in a new machine expecting the following schedule returns on their investment....
A company invested $150,000 in a new machine expecting the following schedule returns on their investment. $12,000 at the end of year 3 and increasing by $2000 starting year 4 through year 10.Starting year 11through 20,the returns drop to $8000 per year. Maintenance costs are estimated at $1000 per year for the first 10 years, and $1500.00 per year for years 11 through 20. The salvage value of the machine is $7500. a) Draw a cash flow for this project....
20 An investment paying $1000 in 1 year, $2000 in 2 years and $7000 in 3...
20 An investment paying $1000 in 1 year, $2000 in 2 years and
$7000 in 3 years returning 10% p.a. has a present value of:
a. $8129.39
b. $6002.54
c. $7210.20
d. $7821.19
21. An investment paying $2000 in 2 year, $6000 in 4 years and $5000 in 12 years at an interest rate of 5% p.a. has a present value of: a. $7906.86 b. $6505.29 c. $7354.21 d. $12 090.49 22 Cash flows of $5000 in 2 years and...
Investment returns and deviation returns
5 investment alternatives have the following returns and standard deviations of returns. AlternativeReturns: Expected ValueStandardDeviationA$1,550$880B3,3301,360C3,3301,140D5,5402,660E14,6004,860 Rank the five alternatives from lowest risk to highest risk using the coefficient of variation. (Round the final answers to 2 decimal places.) AlternativesCoefficient ofVariationA B C D E RankingAlternativeLowest risk (Click to select) A C B D E | (Click to select) A C B D E to (Click to select) A C B D E | (Click to select) A C B D E Highest risk (Click to select) A C B D E
A government bond was issued on 2nd January 2013 with a maturity of 10 years. On the 2nd January 2016, its yield on the...
A government bond was issued on 2nd January 2013 with a maturity of 10 years. On the 2nd January 2016, its yield on the yield curve is associated with a maturity of ___________. (a) 3 years (b) 7 years (c) 10 years (d) 13 years
Please show working for all parts. 1. The annual returns of two stocks are given as...
Please show working for all parts.
1. The annual returns of two stocks are given as follows. Year Stock A Stock B 2011 -10% 21% 2012 2013 20% 5% 7% 30% 2014 -5% -3% 2015 2% -8% 2016 9% 25% (a) Estimate the expected return and volatility of each stock. (b) Estimate the covariance and correlation between two stocks. (c) Find the expected returns and volatilities of portfolios that maintain 100.6% investment in Stock A and 100(1-x)% in Stock B,...
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...
MCD recorded stock returns equal to 5%, 6%, 7%, 8%, and 9%, in years 2014, 2015, 2016, 2017, and 2018, in the same respective order. What is the average return of MCD over this time period? Select one: a. 7% b. 4% C. 35% d. 8% A portfolio consisting of the 500 largest companies in the market, with equal proportions invested in each company, will have close to Select one: a. Zero firm-specific risk. b. Zero risk. C. Zero market...
5. Assume that an investment is forecasted to produce the following returns: a 20% probability of a 12% return; a 50% probability of a 16% return; and a 30% probability of a 19% return. What is the standard deviation of return for this investment? A) 5.89% B) 16.1% C) 2.43% D) 15.7% 6. Answer the questions below using the following information on stocks A, B, and C. Expected Return Standard Deviation Beta 20% 12% 1.8 21% 10% 2.2 10% 10%...
A company invested $150,000 in a new machine expecting the following schedule returns on their investment. $12,000 at the end of year 3 and increasing by $2000 starting year 4 through year 10.Starting year 11through 20,the returns drop to $8000 per year. Maintenance costs are estimated at $1000 per year for the first 10 years, and $1500.00 per year for years 11 through 20. The salvage value of the machine is $7500. a) Draw a cash flow for this project....
20 An investment paying $1000 in 1 year, $2000 in 2 years and
$7000 in 3 years returning 10% p.a. has a present value of:
a. $8129.39
b. $6002.54
c. $7210.20
d. $7821.19
21. An investment paying $2000 in 2 year, $6000 in 4 years and $5000 in 12 years at an interest rate of 5% p.a. has a present value of: a. $7906.86 b. $6505.29 c. $7354.21 d. $12 090.49 22 Cash flows of $5000 in 2 years and...
Please show working for all parts.
1. The annual returns of two stocks are given as follows. Year Stock A Stock B 2011 -10% 21% 2012 2013 20% 5% 7% 30% 2014 -5% -3% 2015 2% -8% 2016 9% 25% (a) Estimate the expected return and volatility of each stock. (b) Estimate the covariance and correlation between two stocks. (c) Find the expected returns and volatilities of portfolios that maintain 100.6% investment in Stock A and 100(1-x)% in Stock B,...
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...
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