You purchased shares of a TSX listed company at the cost of $53.40 per share at the beginning of 2017.Over the next four years, the stock had following stock prices and dividends:Year Year End Price Dividends2017$55.70$1.802018$52.40$1.902019$50.80$1.002020$57.90$1.30Calculate the following statistics: (1/1000 of one percent without % sign, e.g. 12.671, if a negativepercentage, -9.56):1)2017 percentage return:2)2018 percentage return:3)2019 percentage return:4)2020 percentage return:5)Arithmetic mean:6)Geometric mean:7)Standard deviation (sample):

Formula for percentage return is given below ,Percentage return = (total year end value - initial…

Answered: 2017 percentage return: 2018 percentage…

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

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

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: Year 2017 2018 2019 2020 2021 2022 Price Dividend 83.64 68.19 69.69 41.88 61.19 110.3 3.23 3.43 3.48…

A: YearsPriceDividend201783.64201868.193.23201969.693.43202041.883.48202161.193.492022110.33.55Required…

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: Coefficient of Variation

A: Please note that I'm assuming that we need to calculate the Coefficient of variation of the 2…

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: Calculate the standard deviation of the following returns. Year Return 1 0.25…

A: Explanation : Standard deviation is measure the risk which is involved in earning of that particular…

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 following data set shows the probability distribution for a survey conducted t determine the…

A: A Discreet probability distribution list a finite list of possible value with probability of each…

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: An investor experiences the following 5 annual returns. Calculate the sample variance of these…

A: 5 Annual Returns are providedWe are required to Calculate Sample Variancen= frequency = 5

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: 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: Returns Year X y 1 17 % 20 % 2 20 32 3 11 15 4 – 7 – 18…

A: arithmetic average =sum of return/5 Arithmetic average =17+20+11-7+10/5=51/5=10.2 Arithmetic average…

Q: What is the sample variance and standard deviation for x =23,17, 15, 30, 25.

A: Sample Variance = ΣX2 - n(Avg X)2/(n - 1) Standard Deviation =√sample Variance

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: 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: 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: Which one of the following is defined as the average compound return earned per year over a…

A: In every business, amounts are being invested for the purpose of calculating and earnings returns.…

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: Calculate the variance of the following returns. Year 1 2 3 4 5 Return 0.17 0.2 -0.17 0.24 0.03…

A: Return in Year 1 = 0.17Return in Year 2 = 0.2Return in Year 3 = -0.17Return in Year 4 = 0.24Return…

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: What is the standard deviation of the following distribution: Probability Possible…

A: In finance, standard deviation is calculated to determine the degree of variation in a particular…

Q: Use the following returns for X and Y. Year 1 2 3 4 5 Returns X 21.7% -16.7 9.7 19.4 4.7 Y 26.1%…

A: YearStock XStock Y121.7%26.1%2-16.7%-3.7%39.7%28.1%419.4%-14.4%54.7%32.1%

Q: Year Returns X Y 1 11% 18% 2 25 26 3 11 10 4 −18 −23 5 10 17 Using the…

A: Arithmetic average return refers to the average rate of return earned over a period of time over the…

Q: Calculate the coefficient of variation for a set of data with standard deviation of 4.2, number of…

A: The coefficient of variation is a ratio calculated by dividing the standard deviation by the mean.…

Q: coefficient variation=.55 positive coeficient of correlation =.20 expected value=$1200 What does…

A: The measure that is used to calculate the dispersion of dataset is called the standard deviation. It…

Q: 1 15% 21%

A: Give :XY15212636713-13-261115To calculate the arithmetic average returns for X and Y:For X:Average…

Q: Given this information, Organigram’s variance of returns during 2017-2020 was

A: Introduction: Variance is considered to be a widely used metric in statistics. In the theory of…

Q: ndard deviation of the following annual returns:

A: Standard deviation of a portfolio is the measures that indicates the deviation of return from the…

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

A: The average annual return is the return that the company is expected to provide if it is considered…

Q: Calculate the arithmetic average for the following returns: Year Retur Ⓒ 24% O 2.2% 03.1% 0.34%…

A: In order to calculate the geometric mean, we must consider the return at the end of the period due…

Concept explainers

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.

Question

You purchased shares of a TSX listed company at the cost of $53.40 per share at the beginning of 2017.
Over the next four years, the stock had following stock prices and dividends:
Year Year End Price Dividends
2017
$55.70
$1.80
2018
$52.40
$1.90
2019
$50.80
$1.00
2020
$57.90
$1.30
Calculate the following statistics: (1/1000 of one percent without % sign, e.g. 12.671, if a negative
percentage, -9.56):
1)
2017 percentage return:
2)
2018 percentage return:
3)
2019 percentage return:
4)
2020 percentage return:
5)
Arithmetic mean:
6)
Geometric mean:
7)
Standard deviation (sample):

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: COMPUTATION OF PERCENTAGE RETURNS FROM 2017-2020 :

VIEW

Step 2: COMPUTATION OF ARITHMETIC MEAN AND GEOMETRIC MEAN :

VIEW

Step 3: COMPUTATION OF STANDARD DEVIATION

VIEW

Solution

VIEW

Step by step

Solved in 4 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Consider the following five monthly returns: 0.04 −0.03 0.03 0.07 −0.02 a. Calculate the arithmetic average monthly return over this period. b. Calculate the geometric average monthly return over this period. c. Calculate the monthly variance over this period. d. Calculate the monthly standard deviation over this period.
Define Trend percentages
Returns for the Alcoff Company over the last 3 years are shown below. What's the standard deviation of the firm's returns? (Hint:This is a sample, not a complete population, so the sample standard deviation formula should be used. Year Return 2010 21.00% 2009 −12.50% 2008 38.40% Select the correct answer. A. 25.78% B. 25.87% C. 25.81% D. 25.84% E. 25.90%
Use the following returns for X and Y. Returns Year 1 22.8% 29.4% - 17.8 10.8 4.8 31.4 4 21.6 - 16.6 5.8 35.4 a. Calculate the average returns for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the variances for X and Y. (Do not round intermediate calculations and round your answers to 6 decimal places, e.g., 32.161616.) c. Calculate the standard deviations for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Y a. Average return % % b. Variance с. Standard deviation %
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Year Returns X Y 1 9% 23% 2 27 44 3 16 -6 4 -17 -20 5 18 52 Calculate the arithmetic average return for X. Calculate the arithmetic average return for Y.
Use the data shown in the following table: K a. Compute the average return for each of the assets from 1929 to 1940 (the Great Depression). b. Compute the variance and standard deviation for each of the assets from 1929 to 1940. c. Which asset was the riskiest during the Great Depression? How does that fit with your intuition? Note: For all your answers type decimal equivalents. Data table Year 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 S&P 500 -0.08906 -0.25256 - 0.43861 -0.08854 0.52880 -0.02341 0.47221 0.32796 -0.35258 0.33204 -0.00914 - 0.10078 Small Stocks - 0.43081 -0.44698 -0.54676 -0.00471 2.16138 0.57195 0.69112 0.70023 - 0.56131 0.08928 0.04327 -0.28063 Corp. Bonds 0.04320 0.06343 -0.02380 0.12199 0.05255 0.09728 0.06860 0.06219 0.02546 0.04357 0.04247 0.04512 World Portfolio -0.07692 -0.22574 -0.39305 0.03030 0.66449 0.02552 0.22782 0.19283 -0.16950 0.05614 -0.01441 0.03528 Treasury Bills 0.04471 0.02266 0.01153 0.00882 0.00516 0.00265 0.00171 0.00173…
Use the following returns for X and Y. Year 1 2 3 4 5 Returns X 22.1% -17.1 10.1 20.2 5.1 Y 27.3% -4.1 29.3 -15.2 33.3 a. Calculate the average returns for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the variances for X and Y. Note: Do not round intermediate calculations and round your answers to 6 decimal places, e.g., .161616. c. Calculate the standard deviations for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. X Answer is complete but not entirely correct. X 8.06 a. Average return b. Variance c. Standard deviation 136.454400 % 11.67 X % Y 14.04 377.286400 x % 19.42%
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 19.6 -14.6 5 4.8 32.4 a. Calculate the average returns for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the variances for X and Y. (Do not round intermediate calculations and round your answers to 6 decimal places, e.g., 32.161616.) c. Calculate the standard deviations for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
please show steps in excel
risk and return
1)Find the forecast for 2012 using the time series trend method. Period Demand 2007 200 2008 150 2009 125 2010 100 2011 50 2) Find the forecast for all possible periods N=3, using the data and the moving average method.
Calculate the standard deviation for the following returns: Year 2017 2018 2019 2020 Return 12.03% -8.24% 1.34% 4.55% Group of answer choices 8.4% 8.1% 7.6% 7.3%

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS