Bear Stearns' stock price closed at $99, $104, $58, $31, $4 over five successive weeks. The weekly standard deviation of the stock price calculated from this sample is: A. $49.58 B. $34.49 C. $43.11 D. $30.18

Q: Mount Rainier stock returned 16.6 percent, 3.2 percent, -8.1 percent, and 9.8 percent over the past…

A: Return refers to the income earned throughout the period on an investment, It includes the cash…

Q: The table below shows the closing monthly stock prices for Penn Company and Teller, Incorporated.…

A: The exponential three-month moving average is calculated by assigning two-thirds of the weight to…

Q: During the last four years, ADL Co. had the following stock prices at the end of each year (starting…

A: Semi-variance only considers the values of stock that fall below the average of the data set for the…

Q: Using the data in the following table,, calculate the return for investing in the stock from January…

A: Returns refer to the income earned on any asset, it constitutes the capital gains through price…

Q: A stock had returns of 14 percent, 13 percent, −10 percent, and 7 percent for the past four years.…

A: Range of stock refers to the stock price which defines the starting and ending price in a specified…

Q: During the last four years, ADL Co. had the following stock prices at the end of each year (starting…

A: Semi-variance is a measure of downside risk or volatility that focuses on the observations or data…

Q: please with proper formula.You find a particular stock has an annual standard deviation of 55…

A: Data given: Annual standard deviation of 55 %   Required:  Standard deviation for a two-month period

Q: A stock has had returns of -5.32 percent, -7.58 percent, 4.68 percent, 7.7 percent, 8.98 percent,…

A: The below expression can be used to calculate geometric average return:

Q: You find a certain stock that had returns of 16 percent. -23 percent, 24 percent, and 9 percent for…

A: The average, also known as the mean, is a measure of central tendency that represents the typical…

Q: s. What is the geometric average return for this time period?

A: Geometric Average: It is the average return for a set of values computed with the products of the…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.45 23456…

A: The arithmetic return is the most basic form of average: add the numbers together and divide them by…

Q: The monthly rates of return for two corporations are given below: Month ABC Ltd. XYZ Ltd. January…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Stock prices over 5 months are observed to be $110.00, $115.00, $98.00, $107.00, and $112.00. What…

A: The annualized standard deviation for the given prices of the stock over the months can be found by…

Q: .5%, -1%, -1.5%, and 0%. What is its average and tandard deviation (pick the closest one)? 0%, 1.27%…

A: Average is also known as mean which shows the middle or central value of data. It is also called a…

Q: The stock price in KMW, Inc. is $50, $54, $56, and $48 on four consecutive days of trading. What is…

A: Price on day 1 is $50 Price on day 2 is $54 Price on day 3 is $56 Price on day 4 is $48 To Find:…

Q: Year 1 2 3 4 5 6 Stocks -15.69% -26.77 37.43 24.13 - 7.56 6.77 Treasury Bills 7.49% 8.09 6.07 6.07…

A: Standard deviation is a statistical measure of the amount of variability or dispersion in a set of…

Q: The table given below reports last five years data on rates of return on two stocks. Calculate and…

A: Arithmetic mean = sum of returns

Q: Using the data in the following table, The average annual return for stock A is calculated the…

A: Portfolio Volatility CalculationHere's how to calculate the volatility (standard deviation) of the…

Q: What is the holding period return over the 10 weeks for the S&P 500? 3+ decimals  What is the…

A: Return means earn additional over the invested amount during the period. Holding period return…

Q: Mount Rainier stock returned 16.6 percent, 3.2 percent, -8.1 percent, and 9.8 percent over the past…

A: Arithmetic average return can be found by using the following formulaArithmetic average return =…

Q: Please explain the price movements of each stock's DIS AND WFC from the past three months shown in…

A: Price Movements and returns:  Stock prices are dynamic and constantly change to reflect the changes…

Q: Compute each stock's average return, standard deviation, and coefficient of variation. (Round your…

A: Return The profit or loss an investor makes from an investment is called a return. All investors'…

Q: GM stock produced the following monthly returns (Jan.- May): 5%, 8%. -2%, 12%and 15% Ford stock…

A: Standard deviation measures the dispersion of the data and is used to calculate the risk.…

Q: You find a certain stock that had returns of 15 percent, -17 percent, 23 percent, and 11 percent for…

A: Standard deviation is computed by following formula-Standard deviation = WhereR = return of stock N…

Q: II. Analyze the given table and answer the following questions. weeks HI LO STOCK DIV VOL(100s)…

A: Stocks are the capital that a company gets by the issue of shares.

Q: Digital Cheese 15% -4 Еxecutive Fruit 7% 2 Month January February March April Мay June 13 July…

A: Variance = ∑(r-rbar)2/(n-1) Standard deviation = √variance Portfolio variance = (W1*SD1)2 +(W2*SD2)2…

Q: Suppose a stock has generated the following annual returns: 13.9%, 12.9% and 7.9%. What was the…

A: Annual returns per year:YearAnnual returns113.9%212.9%37.9%

Q: Stock in MDI Corp. has had the following returns over the last 3 years. Calculate the standard…

A: Average return (Ar) =(Sum of all returns) / Number of return=>Average return (Ar) = (-0.5%…

Q: Here are the percentage returns on two stocks. Digital Executive Month Cheese Fruit January February…

A: Variance:Variance is a valuation of difference in each stock from the mean of stocks. It shows how a…

Q: Here are the returns on two stocks. January February March April May June July August Digital Cheese…

A: Here, Month D.C E.F January 14 8 February -4 2 March 6 5 April 8 12 May -5 3 June 4 6…

Q: ABC stock price and dividend history are as follows. Fill in the returns (to 4 decimal places).…

A: Stock price history and dividend history of a stock has been provided. We have to find all kinds of…

Q: A stock had returns of 11.57 percent, -15.55 percent, 21.95 percent, 27.00 percent, and 10.50…

A: Let the stock return for the year t be rt.Given,r1= 0.1157r2= 0.1555r3= 0.2195r4= 0.2700r5=0.1050

Q: The table below shows the closing monthly stock prices for Penn Company and Teller, Incorporated.…

A: PennApril: 200.33May: 213.28June: 196.46July: 207.33August: 233.42September: 206.53October:…

Q: sider the following annual returns of Estee Lauder and Lowe’s Companies:     Estee Lauder Lowe’s…

A: Standard deviation is the statistical measure of the risk of the stock and it is measured as…

Q: A stock had returns of 18.94 percent, 22.58 percent, -15.98 percent, 9.38 percent, and 28.45 percent…

A: Average return=Sum of Returns / Number of returns

Q: A stock has had returns of 16.72 percent, 12.20 percent, 5.90 percent, 26.86 percent, and −13.49…

A: r1 = 0.1672 r2 = 0.1220 r3 = 0.0590 r4 = 0.2686 r5 = - 0.1349 Number of returns (n) = 5

Q: 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 23.6% 46.3% 24.7% 26.7% 30.5% 86.9% 9.0% 23.1%…

A: Expected Return:The expected rate of return refers to the anticipated gain or loss on an investment…

Q: Using the data from the following​ table,calculate the return for investing in this stock from…

A: Given:   Stock price Dividend 1-Jan $50.18   31-Mar $51.11 $0.58 30-Jun $49.56 $0.58…

Q: which stocks are undervalued or overvalued. a. Padma – 22 percent

A: Expected return from the portfolio is the weighted average of the return generated from the…

Q: A stock had returns of 17.47 percent, -7.03 percent, and 23.78 percent for the past three years.…

A: The standard deviation calculates the deviation of the random numbers from its central value. It is…

Q: You find a certain stock that had returns of 16 percent, -9 percent, 23 percent, and 24 percent for…

A: Standard deviation is computed by following formula-Standard deviation = WhereR = return of stockN =…

Q: Using the data in the table to the right, calculate the return for investing in the stock from…

A: Total dividends = $0.21 + $0.19 + $0.18 + $0.21Total dividends = $0.79Capital Gain = Final Price…

Q: The returns on Relnvest Ltd. and GEM Inc. stocks over the past five months are as follows: Relnvest…

A: Given information: Returns of two stocks from January to May   Reinvest Ltd GEM Inc January 15%…

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.