Week 5 Homework & Self Assessments

help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

Stock returns and your retirement account: Suppose your retirement accounthas a balance today of $25,000 and you are 20 years old. If you are investedin a diversifed portfolio of stocks, you might hope that the historical returnof about 6% continues into the future. Consider how the balance in yourretirement account evolves as you age under the diferent assumptions below.(If you like, use a spreadsheet program to help you with this question.)(a) Compute the balance in your retirement account when you will be 25,30, 40, 50, and 65 years old assuming the average annual rate of return is6%. Assume there are no deposits or withdrawals in this account, so theoriginal balance just accumulates.(b) Do the same thing for rate of return of 5% and 7%. How sensitive is thecalculation to the rate of return?(c) Plot your retirement account balance for these three scenarios (6%, 5%,7%) on a standard scale.(d) Do the same thing with a ratio scale.

Use the end of year price, dividend data (dividend paid during year), and annual returns provided below for the common stocks of Norvell and Napier to respond to questions 1 through 6. It is okay to use your calculator when generating the answers. Just include the equations that you use, and make sure that you are able to do these calculations on the exam. Norvell Napier Date Close Price Dividend Annual Return (%) Annual 12/31/2018 24.00 Close Price 26.00 Dividend Return (%) 12/31/2019 31.63 0.92 35.63 28.14 0.86 11.54 12/31/2020 26.88 1.12 -11.48 34.47 0.98 25.98 12/31/2021 35.26 1.32 36.09 44.25 1.10 31.56 12/31/2022 32.65 1.52 -3.09 39.07 1.22 -8.95 12/31/2023 36.84 1.72 18.10 40.56 1.34 7.24 Estimated = Norvell - 21.84% Estimated = 16.04% Napier 3. Compute the covariance between the returns of Norvell stock and Napier stock. 4. Now compute the correlation between the Norvell and Napier stocks and indicate how this relates to the covariance in question 2. 5. You must now compute the…

quiz 8-3

quiz 8-3

2. Dividends and stock values The following graph shows the value of a stock's dividends over time. The stock's current dividend is $1.00 per share, and dividends are expected to grow at a constant rate of 4.50% per year. The intrinsic value of a stock should equal the sum of the present value (PV) of all of the dividends that a stock is supposed to pay in the future, but many people find it difficult to imagine adding up an infinite number of dividends. Calculate the present value (PV) of the dividend paid today (Do) and the discounted value of the dividends expected to be paid 10, 20, and 50 years from now (D 10, D20, D50). Assume that the stock's required return (rs) is 5.40%. Note: Carry and round the calculations to four decimal places. Time Period Dividend's Expected Future Value Dividend's Expected Present Value Now End of Year 10 End of Year 20 End of Year 50 Using the blue curve (circle symbols), plot the future value of each of the expected future dividends for years 10, 20,…

You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical returns: Year TB 2017 2018 2019 -7.00% 25.00 -13.00 2020 49.00 2021 13.00 FA -16.00% 41.00 24,00 -5.00 23.00 a. Calculate the average rate of return for each stock during the 5-year period. Do not round Intermediate calculations. Round your answers to two decimal places. Stock A: % Stock B: b. Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Do not round intermediate calculations. Round your answers to two decimal places. Negative values, if any, should be Indicated by a minus sign. Year 2017 2018 2019 % Portfolio % % % % 2020 2021 Average return c. Calculate the standard deviation of returns for each stock and for the…

Assume you have USD $100,000 of cash to buy the following stock at week 1 price. What is the weekly update on your portfolio given the end of week price. What is the closing portfolio worth in week 10. Assuming 0.5% transaction cost. Show all workings Week 1 3 4 5 6 7 9 10 91.86 $ 82.20 85.2 83.12 86.84 87.83 85.13 85.25 91.69 88.86 Transaction 0.5%

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financial advisor evaluates four stocks for inclusion in an investor's portfolio. A orrelation matrix showing each stock's correlation with the other stocks is shown below Stock ALK CMN BTY DLE ALK 0.40 0.58 1.00 -0.25 BTY 0.40 1.00 0.16 -0.04 CMN -.25 .16 1.00 .37 DLE .58 .04 .37 1.00 f the goal is to reduce the investor's overall portfolio risk, which two stocks should the advisor recommend? a. ALK and DLE b. ALK and CMN c. BTY and DLE BTY and CM

You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical returns: Year FA IB 2017 -17.00% -8.00% 2018 34.00 14.00 2019 29.00 -18.00 2020 -5.00 55.00 2021 21.00 19.00 a. Calculate the average rate of return for each stock during the 5-year period. Do not round intermediate calculations. Round your answers to two decimal places. Stock A: % Stock B: % b. Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Do not round intermediate calculations. Round your answers to two decimal places. Negative values, if any, should be indicated by a minus sign.

You decide to form a portfolio of the following amounts invested in the following stocks. What is the beta of the portfolio? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THE ANSWER ROUNDING TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25. Amount Beta $5,817 1.65 Microsoft $4,128 0.54 $2,818 1.67 $8,782 2.27 Stock Apple Ford Time Warner Expected Return 10.50% 16.90% 15.75% 11.80%

Solve the problem this with the long explanation. Im needed max in 30 minutes thank u What is a stock, types of stocks, why and how to trade? How to profit from a stock? How to calculate your returns?

Vijay

quiz 8-14

As an analyst at an investment bank, you are asked to compare the monthly returns of the two stocks Tesla and Apple Inc during the period of August 2020 to March 2021: Tesla, Xi Aug Sep Oct Nov Dec Jan Feb Mar 0.038 0.199 0.187 -0.069 0.481 0.392 -0.039 -0.150 Apple Inc, y: 0.184 -0.010 0.111 -0.042 0.027 0.052 0.051 -0.106 Σx₁ = 1.039 Σ(x-x)² = 0.3549 Σχ Σy = 0.267 Σ(y: - y)2 = 0.0564

Risk and return You are considering an investment in the stock market and have identified three potential stocks, they are Shanghai Fosun Pharmaceutical Group (HKG: 2196), China Petroleum & Chemical Corporation (HKG: 386) and Commonwealth Bank (ASX: CBA).  The historical prices between 2013 and 2020 in the table below, note that these prices are recorded on the 1st day of the year, for example, 1st of January 2020.  Students assume no dividend is distributed during this period and ignore the exchange rate conversion 1.Calculate the return and risk (standard deviation) of each stock.  Explain the relation (positive or negative) between risk and return based on your answers    2.Calculate the correlation coefficient between (a) Fosun and China Petroleum and (b) China Petroleum and CBA.    3.Calculate the expected (annual) return and standard deviation if you owned a portfolio consisting of 50% in Fosun and 50% in China Petroleum.    4.Calculate the expected (annual) return and…

Check My Work eBook An individual has $45,000 invested in a stock with a beta of 0.4 and another $75,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

You decide to form a portfolio of the following amounts invested in the following stocks. What is the beta of the portfolio? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THE ANSWER ROUNDING TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25. Amount Beta Expected Return $9,370 0.69 10.50% Microsoft $5,598 1.6 16.90% $4,261 1.1 15.75% $4,668 2.39 11.80% Stock Apple Ford Time Warner

Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. (Click on the following icon in order to copy its contents into a spreadsheet.) Return for the entire period is %. (Round to two decimal places.) Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $32.09 $30.63 $31.95 $31.34 $36.15 $40.39 Dividend $0.21 $0.18 $0.18 $0.21

Q2. Stock Alpha and Stock Beta have following historical returns. Mr. Andersion invested 60% of his wealth in Stock Alpha and 40% of his wealth to stock Beta. Year Stock Alpha Stock Beta2015 4% 7%2016 9% 2%2017 1% 7%2018 -3% 3%2019 8% -4% 1-Calculate the realized rate of return on the portfolio have been in each year from 2015 to 2019.2-Calculate the average return on the portfolio have been during the period.3-Calculate the Covariance of returns of stock Alpha and stock Beta and Correlation between the returns of two stocks.4-Calculate the standard deviations of returns for each stock and for the portfolio.

eBook An individual has $10,000 invested in a stock with a beta of 0.4 and another $60,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places. BA

quiz 8-19

Your portfolio had the values in the table below for the four years listed. There were no withdrawals or contributions of new funds to the portfolio. Calculate your average return over the​ 4-year period. ​(Click on the icon here    in order to copy its contents of the data table below into a​ spreadsheet.)     Beginning Value Ending Value 2016 ​$60,618   ​$55,518   2017 55,518   64,938   2018 64,938   68,984   2019 68,984   70,380     The return for 2016 is enter your response here​%. ​ (Round to one decimal​ place.)

Your portfolio had the values in the following table for the four years​ listed: Data table ​(Click on the icon here    in order to copy its contents of the data table below into a​ spreadsheet.)     Beginning Value Ending Value 2016 ​$59,462   ​$55,536   2017 55,536   64,852   2018 64,852   67,183   2019 67,183   70,997 . a. Calculate your return for each year over the​ 4-year period. Then calculate the average return over the​ 4-year period. b. Calculate the portfolio standard deviation.       Question content area bottom Part 1 The return for 2016 is enter your response here​%. ​ (Round to two decimal​ places.)

You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical returns:  Year rA rB 2014 -20.00% -5.00% 2016 42.00 15.00 2017 20.00 -13.00 2018 -8.00 50.00 2019 25.00 12.00 a. Calculate the average rate of return for each stock during the 5-year period. b. Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? c. Calculate the standard deviation of returns for each stock and for the portfolio. d. Suppose you are a risk-averse investor. Assuming Stocks A and B are your only choices, would you prefer to hold Stock A, Stock B, or the portfolio? Why?