2017 percentage return: 2018 percentage return: 2019 percentage return: 2020 percentage return: Arithmetic mean: Geometric mean: Standard deviation (sample):

Q: .) From the data below, determine the Microsoft Corporation's - (a) Find arithmetic average return…

A: year Return(%) 2011 18% 2012 21% 2013 16% 2014 11% 2015 19% 2016 22% 2017 12% 2018…

Q: Using historical risk premiums from Table 5.5 over the 1927-2018 period as your guide, what would be…

A: Holding period return (HPR) is the total return received from holding an investment over a specific…

Q: A probability distribution of possible returns from a share has a variance of 0.0025. What is the…

A: Standard deviation is square root of variance. Standard deviation = √Variance

Q: For a set of positively correlated data, you calculate that 84% of the variation in the dependent…

A: The coefficient of determination (R-squared) represents the proportion of the variation in the…

Q: Dependent Variable: PORTFOLIO Method: Least Squares Sample: 1991M01 2009M12 Included observations:…

A: The objective of the question is to determine if the given model is statistically significant and to…

Q: Given the following grades on s test: 86, 92, 100, 93, 89, 95, 79, 98, 68, 62, 71, 75, 88, 86, 93,…

A: The objective of this question is to find the percentage of scores that lie within one and two…

Q: 0 0 0 о

A: Hi student Since there are multiple questions, we will answer only first question.  Every business…

Q: Expected accumulated value for investment A: Expected accumulated value for investment B: Investment…

A: The expected return is a concept in finance that represents the anticipated gain or loss on an…

Q: Use the means and standard deviations of return for MSFT and TSLA in percent per month that are…

A: Opportunity set is the set of all possible portfolios that an investor may construct from a given…

Q: Use the following returns for X and Y. Year 1 2 3 4 5 X 21.4% -16.4 9.4 18.8 4.4 Returns. Y 25.28…

A: YearsReturn XReturn Y121.4%25.2%2-16.4%-3.4%39.4%27.2%418.8%-13.8%54.4%31.2%Required: Average Return…

Q: The standard deviation of IWM return and  the standard deviation of EEM return?

A: Here, To Find: Standard deviation of IWM =? Standard deviation of EEM =?

Q: Given the following historical returns, what is the standard deviation?  Year 1 = 9%; year 2 = -11%;…

A: Step 1:Given :n = 5Year 1 = 9%Year 2 = -11%Year 3 = 8%Year 4 = -12%Year 5 = -9% Step 2:Calculate the…

Q: Given the following historical returns, what is the variance? Year 1 = 9%; year 2 = -11%; year 3 =…

A: The objective of the question is to calculate the variance of the given historical returns. Variance…

Q: The last four years of returns for a stock are as shown here: a. What is the average annual return?…

A: Year Return 1 -3.60% 2 27.50% 3 12.40% 4 3.80% To Find: Average Anual return Variance…

Q: An asset has an average return of 11.15 percent and a standard deviation of 23.91 percent. What is…

A: We make investments in a financial security with the hope of earning a return from the investment.…

Q: What is the standard deviation given the following information? Probability Possible Returns 24.0%…

A: Probability (P)Possible Returns0.2524.0%0.2036.0%0.559.0%Required:Standard Deviation =?

Q: Given the following historical returns, what is the variance? Year Return 1 7 percent 3 percent 3.…

A: Return in year 1 (R1) = 7% R2 = 3% R3 = 19% R4 = -11% R5 = -1% Let R = Average return

Q: b. What is the variance of the stock's returns? The variance of the returns is 178.46917. (Round to…

A: Year Return(%) 1 -3.60 2 27.50 3 12.40 4 3.80 To Find: Variance

Q: Given the following historical returns, what is the variance? Year 1 = 9%; year 2 = -11%; year 3 =…

A: The objective of the question is to calculate the variance of the given historical returns. Variance…

Q: Assume the mean and standard deviation of sample returns are​ 8% and​ 10% respectively. Assuming…

A: Sample returns are 8% Standard deviation is 10% Returns are normally distributed To Find:…

Q: Use the following returns for X and Y.     Returns Year X Y 1     22.7 %       29.1 %   2   – 17.7…

A: Return means the amount received over the amount invested. Basically it shows the gain percentage or…

Q: Given the following sample data, calculate the performance measures for portfolio P and the market…

A: Portfolio performances can be measured with some techniques such as Sharpe ratio, Treynor ratio and…

Q: How do you calculate the value at a node in a binomial tree? A. As a present value of the two…

A: A binomial tree is a graphical representation of the different intrinsic values that an option could…

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: Given the following historical returns, what is the variance? Year 1 = 9%; year 2 = -11%; year 3 =…

A: Step 1: Step 2:Step 3:Step 4:Tye variance of the returns are Var(R)= 0.0122

Q: You are given the following information about 4 stocks: Variance-Covariance Matrix 3 0.0325 0.0125…

A: Weight in stock 1 (w1) = 0.25 Weight in stock 2 (w2) = 0.25 Weight in stock 3 (w3) = 0.25 Weight in…

Q: Expected Return, Variance, Std. Deviation and Cofficient of Variation: Magee Inc.'s manager believes…

A: The standard deviation of the stock is the measure of the deviation of the stock's return from the…

Q: Year U.S. Gov’t T-Bills U.K. Common Stocks 2015 0.063 0.150 2016 0.081 0.043 2017 0.076…

A: Geometric mean return is used to calculate the average rate per period on the investment over the…

Q: Calculating Returns and Variability Using the following returns, calculate the arithmetic average…

A: Using excel standard deviation and variance function

Q: 4. Using the following returns, calculate the arithmetic average returns, the variances, and the…

A: ReturnsYearXY10.130.2420.310.4530.2-0.114-0.21-0.2550.220.53Average=AVERAGE(B3:B7)=AVERAGE(C3:C7)Var…

Q: Over the past 3 years an investment returned 0.19, -0.08, and 0.07. What is the variance of returns?

A: In the given case, the investment returns of the past 3 years are given. So, number of years is…

Q: Over the past 3 years an investment returned 0.16, -0.11, and 0.08. What is the variance of returns?

A: In the given case, the investment returned of the past 3 years are given . So, number of years is 3.…

Q: Returns Year X 512345 12% 18% 26 27 -19 -24 12 10 10 18 Using the returns shown above, calculate the…

A: Arithmetic average return:The arithmetic average return is the simple average return. It is…

Q: (Click on the following icon g in order to copy its contents into a spreadsheet.) Year 1 4 Return -…

A: A statistical measure that represents the spread among the return of the investment is term as the…

Q: Expected Return, Variance, Std. Deviation and Cofficient of Variation: Magee Inc.'s manager…

A: Formulas:

Q: Expected Return, Variance, Std. Deviation and Cofficient of Variation:Magee Inc.'s manager believes…

A: The expected return Re is as shown on the white board. Pi = Probability of state i; Ri is the return…

Q: Which one of the following best describes an arithmetic average return?

A: Arithmetic average return is the mean of all returns and hence is computed by adding all the returns…

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.