Module 2 Web Exercise.
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May 21, 2024
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FIN 335 Financial Markets
Southern New Hampshire University
Frank Warnock
24EW4
Module 2 Web Exercise
Chapter 1: “Working with Financial Market Data”
-What is the Dow forecast to be in six months?
According to www.forcasts.org
, in 6 months the DJIA is forecasted to be 35680, =/- 427.
-What percentage change is forecast for the next six months?
The percentage change forecasted in the next 6 months will be (35680-38691.12)/38691.12=-7.78%.
Chapter 2: “The Financial System”
-What percentage of assets do commercial banks hold in loans? What percentage of assets are held in mortgage loans?
According to the most recent report given in the source material, the total assets (in billions) are 162.7 with 43.0 being in loans, making that a percentage of (43.0/162.7)=26.42%. Same asset level of 162.7 against mortgage loans totaling 22.2 giving a percentage of 13.64%
-What percentage of assets do savings and loans hold in mortgage loans?
-What percentage of assets do credit unions hold in mortgage loans and in consumer loans?
31.3/76.4=40.97%
-What is the mission of the NYSE?
The mission of the NYSE is to promote public confidence and ensure that deals can be conducted between trusted parties.
-Firms must pay a fee to list their shares for sale on the NYSE. What would be the fee for a firm with 5 million common shares outstanding?
According to NYSE.com, “
The first time an issuer lists a class of common shares, Listing Fees are charged at a flat rate of $300,000.”
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Please answer Question 8 & 9
8.On March 24, 2020, the Dow Jones Industrial Average opened at $18,591.93 and closed at $20,704.91. What was the daily return that day, and what was the effective annual rate return (in percent) of the stock market that day?Daily Return: __________% EAR:_________ %
9. Financial analysts forecast GDY Inc.’s growth for the future to be 8%. GDY's recent annual dividend was $6.00. What is the value of GDY stock when the required return is 11%?Stock Value: $___________________
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which one is correct please confirm?
QUESTION 17
Unlike long-term financial forecasts, short-term financial forecasts (one year or less) tend to be more ___________.
a.
speculative
b.
helpful
c.
strategic
d.
detailed
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Fast pls solve this question correctly in 5 min pls I will give u like for sure
Svtrik
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Problem Set #3
Use the following information to answer the next three questions:
The Last four years of returns for a stock are as follows:
Year 2016 2017
Return 9.5%
9.5% 19.4% -6.2%
2018
2019
18.9%
Question:
The average annual return is closest to?
9.6%
13.9%
10.4%
12.9%
14.2%
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Check my work
Problem 5-16 Value-Weighted Indexes (LO4, CFA2)
The following three defense stocks are to be combined into a stock index in January 2022 (perhaps a portfolio manager believes
these stocks are an appropriate benchmark for his or her performance). Assume the index is scaled by a factor of 10 million; that is, if
the total value of all firms in the market is $5 billion, the index would be quoted as 500.
Douglas McDonnell
Dynamics General
International Rockwell
Shares (millions)
1/1/22
Price
1/1/23
1/1/24
535
450
230
$ 89
70
99
$ 94
65
88
$ 109
79
105
a. Calculate the initial value of the index if a value-weighting scheme is used.
Note: Round your answer to 2 decimal places.
Index value
b. What is the rate of return on this index for the year ending December 31, 2022? For the year ending December 31, 2023?
Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a
percent rounded to 2 decimal places.
2022 return…
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Fast pls solve this question correctly in 5 min pls I will give u like for sure
Surbh
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Problem 12-22 Calculating Beta (LO4, CFA1)
You are given the following information concerning a stock and the market:
Year Market
2017 14%
2018 13
2019 14
2020 -14
2021 37
2022 15
Returns
a. Calculate the average return and standard deviation for the market and the stock.
Note: Use Excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to
2 decimal places.
Stock
26%
29
5
-23
16
24
Average return
Standard deviation
Correlation
Beta
Market
%
%
Stock
b. Calculate the correlation between the stock and the market, as well as the stock's beta.
Note: Use Excel to complete the problem. Do not round intermediate calculations. Round your correlation answer to 2 decimal
places and beta answer to 4 decimal places.
%
%
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Month
Digital Cheese
Executive Fruit
January
15
%
7
%
February
–4
2
March
5
5
April
7
13
May
–5
1
June
3
5
July
–3
–3
August
–9
–1
a-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 1 decimal places.)
a-2. Which stock is the riskier if held on its own?
b. Now calculate the variance and standard deviation of the returns on a portfolio that invests an equal amount each month in the two stocks. (Do not round intermediate calculations. Round your answers to 1 decimal places.)
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Year AT&T Stock Returns Market Index Returns
1 8 6
2 7 3
3 10 12
4 14 13
5 8 9
Compute the correlation coefficient between AT&T and the Market Index.
Enter answer using 3 decimal places. Example 0.123
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Q15
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Year AT&T Stock Returns Market Index Returns
1 8 6
2 7 3
3 10 12
4 14 13
5 8 9
Compute the intercept of the characteristic line for AT&T.
Enter answer using 3 decimal places. Example: 0.123
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