In the second half of the 1990s, the average annual real return to the stock market...
In the second half of the 1990s, the average annual real return to the stock market was about _____ each year.
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In the second half of the 1990s, the average annual real return
to the stock market...
As the return on the market is 22 percent, the stock return is 30 percent, while...
As the return on the market is 22 percent, the stock return is 30 percent, while the return on the market -10 percent, the return on the stock is -14 percent. Based on this information what is the most likely value of the beta of this stock? Question 4 options: 1.4 1 2.5 0.7
Please solve 8b) (b) Suppose in a market the average return on common stock is 10...
Please solve 8b)
(b) Suppose in a market the average return on common stock is 10 percent, while the return on government bond is 6 percent. Find out the cost of capital using CAPM if: (i) risk associated with the firm in question B = 1, (ii) B=0.5. 4+2 8. (a) What is Economic Order Quantity (EOQ)? (b) Company XYZ faces an annual demand of 5,40,000 units. The purchase price of stock is Rs. 24 per thousand units, with a...
solve question 5&6 5. Calculating Average Returns The rate of return on Cherry Jalopies, Inc., stock...
solve question 5&6
5. Calculating Average Returns The rate of return on Cherry Jalopies, Inc., stock over the last five years was 7 percent, 21 percent, - 8 percent, - 5 percent, and 31 percent. Over the same period, the return on Straw Construction Company's stock was 12 percent, 34 percent, - 11 percent, -7 percent, and 41 percent. What was the arithmetic average return on each stock over this period? 6. Calculating Returns and Variability Using the following returns,...
The stock market of country A has an expected return of 5 percent, and a standard...
The stock market of country A has an expected return of 5 percent, and a standard deviation of expected return of 8 percent. The stock market of country B has an expected return of 15 percent and a standard deviation of expected return of 10 percent.Calculate the expected return of a portfolio that is half invested in A and half in B.
1) A stock has generated an annual average return of 9.5% with a standard deviation of...
1) A stock has generated an annual average return of 9.5% with a standard deviation of 40.7% during the last 10 years. If the average risk-free rate was 1.7%, what was this stock's Sharpe Ratio? Round to two decimal places. 2) The standard deviation of a stock's annual returns is 40.4%. The standard deviation of market returns is 24.3%. If the correlation between the returns of the stock and the market is 0.3, what is this stock's beta? Round to...
1. You have the following data on (1) the average annual returns of the market for...
1. You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A and B. Which of the possible answers best describes the historical betas for A and B? Years Market Stock A Stock B 1 0.03 0.16 0.05 2 -0.05 0.20 0.05 3 0.01 0.18 0.05 4 -0.10 0.25 0.05 5 0.06 0.14 0.05 What do we know about the beta of each stock? Stock...
You are given the following information concerning a stock and the market Returns Market Stock Year...
You are given the following information concerning a stock and the market Returns Market Stock Year 15% 27% 19 2011 2012 19 2013 25 5 2014 -12 -22 2015 35 16 2016 15 27 a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Market Stock % Average return Standard deviation b. Calculate the...
If your portfolio expected annual average total return was 10% and long-term inflation was about 3%,...
If your portfolio expected annual average total return was 10% and long-term inflation was about 3%, what would your REAL average annual returns be with a 100% equity portfolio? 10% 7% 3% 5% If you put your retirement funds in a savings account earning 0.5% and inflation was 3%, how much would you lose in value each year against inflation by not earning more than inflation on your retirement savings? 0.5% less 3% for minus 2.5% 3% 0.5% 10.2%
Average Annual Rates Standard Deviation T-Bills Inflation Real T-Bill T-Bills Inflation Real T-Bill All months 3.46...
Average Annual Rates Standard Deviation T-Bills Inflation Real T-Bill T-Bills Inflation Real T-Bill All months 3.46 2.10 0.56 3.12 4.07 3.81 First half 1.04 1.68 − 0.29 1.29 5.95 6.27 Recent half 4.45 3.53 0.90 3.11 2.89 2.13 (1926-2016) Market Index Big/ Growth Big/ Value Small/ Growth Small/ Value Mean excess return (annualized) 0.83 7.98 11.67 8.79 15.56 Standard deviation (annualized) 18.64 18.50 24.62 26.21 28.36 Suppose that the inflation rate is expected to be 2.10% in the near future...
The Costaguanan stock market provided a rate of return of 96%. The inflation rate in Costaguana...
The Costaguanan stock market provided a rate of return of 96%. The inflation rate in Costaguana during the year was 80%. In the United States, in contrast, the stock market return was only 16%, but the inflation rate was only 2%. Calculate the real rate of return for both the Costaguana and the United States stock markets. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Real rate of return Costaguana United States...
Please solve 8b)
(b) Suppose in a market the average return on common stock is 10 percent, while the return on government bond is 6 percent. Find out the cost of capital using CAPM if: (i) risk associated with the firm in question B = 1, (ii) B=0.5. 4+2 8. (a) What is Economic Order Quantity (EOQ)? (b) Company XYZ faces an annual demand of 5,40,000 units. The purchase price of stock is Rs. 24 per thousand units, with a...
solve question 5&6
5. Calculating Average Returns The rate of return on Cherry Jalopies, Inc., stock over the last five years was 7 percent, 21 percent, - 8 percent, - 5 percent, and 31 percent. Over the same period, the return on Straw Construction Company's stock was 12 percent, 34 percent, - 11 percent, -7 percent, and 41 percent. What was the arithmetic average return on each stock over this period? 6. Calculating Returns and Variability Using the following returns,...
You are given the following information concerning a stock and the market Returns Market Stock Year 15% 27% 19 2011 2012 19 2013 25 5 2014 -12 -22 2015 35 16 2016 15 27 a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Market Stock % Average return Standard deviation b. Calculate the...
The Costaguanan stock market provided a rate of return of 96%. The inflation rate in Costaguana during the year was 80%. In the United States, in contrast, the stock market return was only 16%, but the inflation rate was only 2%. Calculate the real rate of return for both the Costaguana and the United States stock markets. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Real rate of return Costaguana United States...
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