Project 2 Questions Summer 2023

A 252.

Here are the returns on two stocks. January February March April May June July August Digital Cheese +14 -4 +6 +8 -5 +4 -3 -9 Executive Fruit +8 +2 +5 +12 +3 +6 w At t -4 -3 Required: a-1. Calculate the variance and standard deviation of each stock. a-2. Which stock is riskier if held on its own? 4 b. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks. c. Is the variance more or less than halfway between the variance of the two individual stocks?

Stock A has the following returns over the past periods. Calculate the downside risk measured by semi-variance? (answer with 4 decimal spaces) 0.0057 -0.0255 0.0621 -0.0879 -0.0983 0.0813 0.0356 -0.0015 -0.0307 0.0427 0.0297 0.0192

Please solve using Excel and show formulas. Here are the percentage returns on two stocks. 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.)   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.) c. Is the variance more or less than half way between the variance of the two individual stocks? multiple choice  more than the 50%-50%Not attempted less than the 50%-50%Not attempted

The last four years of returns for a stock are as shown here: E a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. ..... Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 1 2 3 4 Return - 4.3% + 27.9% + 12.3% + 3.6%

Here are the percentage returns on two stocks. Digital Executive Month Cheese Fruit January February 14% 68 -3 1 March 6 4 April May 8 14 -4 2 June 6 July August -2 -4 -8 -2 a-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 1 decimal places.) Executive Fruit Digital Cheese Variance Standard deviation % a-2. Which stock is the riskier if held on its own? Digital Cheese

Here are the returns on two stocks. Digital Executive Cheese Fruit January +15 +8 February -2 +1 March +4 +6 April +6 +16 May -3 +2 June +2 +6 July -1 -2 August -7 -1 Required: a-1. Calculate the variance and standard deviation of each stock. a-2. Which stock is riskier if held on its own? b. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks. c. Is the variance more or less than halfway between the variance of the two individual stocks? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req C Calculate the variance and standard deviation of each stock. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Variance Standard deviation Digital Cheese Retum Executive Fruit Return % %

Here are the returns on two stocks. Digital Cheese +14 -3 +5 +7 -4 +3 -2 -8 Executive Fruit +7 +1 January February March April May +4 +12 +2 +7 -3 -2 June August Required: a-1. Calculate the variance and standard deviation of each stock. a-2. Which stock is riskier if held on its own? b. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks. c. Is the variance more or less than halfway between the variance of the two individual stocks?

hi there, i need requirement C. Thankss

The last four years of returns for a stock are as shown​ here: LOADING... . a. What is the average annual​ return? b. What is the variance of the​ stock's returns? c. What is the standard deviation of the​ stock's returns? Note​: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format.       Question content area bottom Part 1 a. What is the average annual​ return?   The average return is enter your response here​%. ​(Round to two decimal​ places.) Part 2 b. What is the variance of the​ stock's returns?   The variance of the returns is enter your response here. ​ (Round to five decimal​ places.) Part 3 c. What is the standard deviation of the​ stock's returns?   The standard deviation is enter your response here​%. ​(Round to two decimal​ places.)   figure Year: 1, 2, 3, 4 Return: -4.2%, +27.9%, +11.8%, +3.8%

Here are the returns on two stocks. Digital Executive Cheese Fruit January +16 +9 February -4 +1 March +6 +7 April +8 +16 May -5 +2 June +4 +7 July -4 August -9 -3 Required: a-1. Calculate the variance and standard deviation of each stock. a-2. Which stock is riskier if held on its own? b. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks. c. Is the variance more or less than halfway between the variance of the two individual stocks? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req C Calculate the variance and standard deviation of each stock. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Variance Standard deviation Digital Cheese Retum Executive Fruit Return % %

he last four years of returns for a stock are as shown​ here: LOADING... . a. What is the average annual​ return? b. What is the variance of the​ stock's returns? c. What is the standard deviation of the​ stock's returns? Note​: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format.       Question content area bottom Part 1 a. What is the average annual​ return?   The average return is enter your response here​%. ​(Round to two decimal​ places.) Part 2 b. What is the variance of the​ stock's returns?   The variance of the returns is enter your response here. ​ (Round to five decimal​ places.) Part 3 c. What is the standard deviation of the​ stock's returns?   The standard deviation is enter your response here​%. ​(Round to two decimal​ places.)       Time Remaining: 00:26:16                     pop-up content starts Data table ​(Click on the following icon   in order…

Using the data in the following table,, estimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. a. Estimate the average return and volatility for each stock. The average return of stock A is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2010 2011 20% 2013 - 1% - 13% Stock A Stock B 20% 12% - 9% Print 2012 8% 9% C Done 2014 4% - 9% 2015 11% 27% - X

The table summarizes the annual mean returns, variances and standard deviations using the monthly return data for four major stock market indexes. Which market is considered most risky using CV (coefficient of variation) as a measure of risk? Market A B C D Market A Market B Market C Market D Mean Return (%) 5 9.4 12 9.3 Variance of Return 184.96 501.76 462.25 368.64 STDEV (%) 13.6 22.4 21.5 19.2

3. Consider three stocks A, B and C and a market index M with the following prices: Year TO T1 T2 T3 A 85 108 110 125 B 12 14 13 15 C 50 60 70 75 M 1128 1435 1578 1786 The risk-free rate equals 4%. a. Compute the expected return and risk on each stock and the market index. b. Construct the matrix of variances and covariances between these assets. c. Construct the matrix of the correlation coefficients. d. Compute the beta coefficients of these companies and the expected return at equilibrium. e. Construct the minimum risk portfolio P1 composed of A and C. Compute the expected return and risk on this portfolio. f. Construct a portfolio P2 composed of A, B and C in proportions of 20%, 30% and 50%. Compute the expected return and risk on this portfolio. What is the contribution of each security to the return and risk pf this portfolio? g. Construct an equally weighted portfolio P3 composed of A, B, C and the risk-free rate. Compute the beta coefficient and position this portfolio with…

Here are the returns on two stocks. Digital Executive Cheese Fruit January +19 +8 February -3 +1 March +5 +4 April +7 +17 May 4 +2 June +3 +4 July August 2 8 aces Required: a-1. Calculate the variance and standard deviation of each stock. a-2. Which stock is riskier if held on its own? b. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks. c. Is the variance more or less than halfway between the variance of the two individual stocks?