. The expected return. The standard deviation of the return. lote: Make sure to round all intermediate calculations to at least five decimal places. Graph/chart ity (%) 35 30- 25- 20- Q O 2

Q: From the following table of returns, compute the arithmetic average return and compute the geometric…

A: From the following table of returns, compute the arithmetic average return and compute the geometric…

Q: Market condition Probability Return on A Good .10 8% Average day .80 10% Bad .10 -45% What is the…

A: To Find: Standard Deviation of A

Q: Given the forward rate ƒ3,6 = 5% and the forward rate £6,8 3%, calculate the forward rate ƒ3,8. Give…

A: A forward rate is a financial term used to describe the interest rate applicable to a financial…

Q: The geometric average of -12%, 20%, and 27% is 10.50" for 10.5%) (Type your answer as a percent, two…

A: We need to use geometric average return equation below.Geometric average =…

Q: State of Economy Bust Boom Security Returns if Probability of State, State Occurs of Economy Roll…

A: It is difficult to arrive at a single accurate figure of the rate of return as it is affected by…

Q: A regression line has an intercept value of 174.71 and slope value of 25.22. What is the predicted…

A: The predicted value (the y-value) of Y is defined as the predicted value of a dependent variable.…

Q: Find the future value Coccumulation) at 4nterest compa continuausly ded for 7 veors for the…

A: Future Value on the income stream can be calculated using the function given in excel.

Q: can you solve this question step by step in very detail and answer those a,b,c. this is so important…

A: a) Data Cleaning and Exploration:Import libraries: You'll need libraries like pandas for data…

Q: What is the standard deviation of asset​ M?

A: Standard deviation tells us how much the expected vary from the actual result.

Q: The following table,, shows the one-year return distribution of Startup, Inc. Calculate: a. The…

A: The expected return of the stock refers to the average benefits that the stock provides to the…

Q: Consider the following information for the next year's return on IBM. probability return 10% 20% 0.8…

A: The profit or loss that an investor predicts on an investment with known historical rates of return…

Q: Month 12 84 SE 86 37 39 40 Excess Returns over the risk free rate M 0.67 3.72 -1.56 2 -2.08 1.69…

A: In this question, we are provided with Excess return over the risk-free rate and need to find out…

Q: Use the following returns for X and Y. Returns Year X Y 1. 21.8% 26.4% 2. -16.8 -3.8 3. 9.8 28.4 4.…

A: Here, Note: Here, we are considering the given data as a sample data, hence applying the formula of…

Q: find the trynors ratio for q and compare it to treynor ratio for m does this analysis indicate…

A: Here,Beta q is 1.25rf is 2%rm is 12%rq is 13.5%

Q: A uniform series of payments begins in year 4 and ends in year 11. If you use the P∕A factor with n…

A: P/A factor value will be the present worth of an annuity factor worth representing at given interest…

Q: Calculate the standard deviation of the following returns. Year Return 1 -0.14 2 -0.1 3 4 5 -0.12…

A: Standard deviation is calculated using the formula: Standard deviation=∑Return-Average…

Q: Vijay

A: The objective of the question is to find the value of the interest rate 'r' given the equation…

Q: Use the following returns for X and Y. Year PA234S 1 5 Returns X 21.6% -16.6 9.6 19.2 4.6 Y 25.8%…

A: The standard deviation measures the level of risk associated with stock, whereas the average return…

Q: Given i(4) = 3.150%, find the equivalent effective bi-weekly rate. O a. 0.11592% O b. 0.11954% O c.…

A: Interest rate (r) = 3.15%  Number of compounding in a year (n)= 4   Effective annual rate =…

Q: Please fill out the table below. Use your estimates from the table to answer the multiple-choice…

A: Calculations are done using excel. Note, answer closest to the calculation are chosen from the…

Q: 234567 5 1 2 Month 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 #2 3 4 5 6…

A: We are given the excess returns over the risk-free rate for three portfolios, namely A, B & M…

Q: Calculate :  M2 measure T2 measure Information Ratio (appraisal ratio) Fund  Average return…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: Following are four economic states, their likelihoods, and the potential returns:   Economic State…

A: The expected return of a stock is the average return that the stock provides based on market…

Q: A linear regression model is Units = 4,004 – 0.659×Week. For week 46, what is the forecast for the…

A: Units = 4004 – 0.659 * WeekNumber of Weeks = 46

Q: Calculate the geometric mean return for the following data set: (Negative value should be indicated…

A: -14% = -0.14,15% = 0.15,-16% = -0.16,13.7% = 0.137,14.1% = 0.141.

Q: USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM   Rates of Return Year RA Computer Market Index…

A: Characteristic Line equation = b + m X

Q: The figure in the popup window.. shows the one-year return distribution for RCS stock. Calcula a.…

A: The expected return of a probability distribution is the sum product of probability with its…

Q: Please help do this calculation step by step I have problems getting the final answer.

A: Calculating the value of weighted-average cost of capital (WACC). We have,WACC = (Weight of Equity x…

Q: Required information Consider the following factors. 1. (FIP,21%,34) 2. (A/G,21%,45) Find the…

A: Single-Payment Compound-Amount(F/P): It refers to the single payment that is due at the end of a…

Q: Over the past 4 years an investment returned 0.1, -0.12, -0.08, and 0.13. What is the standard…

A: Given information : Returns for past 4 years   Year Stock returns 1 0.1 2 -0.12 3 -0.08 4…

Q: YEAR 2018 2019 2020 2021 2022 R(BOA) 28% 24% -6% 23% 20% R(WF) 26% 25% -9% 21% 26% Calculate the…

A: ER= Return*ProbabilityVariance = probability* deviation^2standard deviation= square root of variance

Q: 3. Security A has the following probability distribution of returns: Scenario Probability Return 0.1…

A: Calculation: Formula snip:

Q: Abu has selected five consecutive financial periods to use in calculating trend percentages. He…

A: Trend analysis of financial numbers or of financial line items entails evaluating a company’s…

Q: Consider the following POPULATION of returns: 5%, -4%, -3%, and 12%. What is the standard deviation…

A: Returns 5% -4% -3% 12% 6.50%

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.