Closing prices for Sillech and New Mines for the years 1999-2014 are shown below. a. Calculate the total returns for each stock for the years 2000-2014 to three decimal places. Note that the price for 1999 is used to calculate the return for 2000. b. Assume that similar returns will continue in the future (i.e., average returns= expected returns). Calculate the expected return, variance, and standard deviation for both stocks and insert these values in the spreadsheet. Use Average, Var, and STDEV functions.
Closing prices for Sillech and New Mines for the years 1999-2014 are shown below. a. Calculate the total returns for each stock for the years 2000-2014 to three decimal places. Note that the price for 1999 is used to calculate the return for 2000. b. Assume that similar returns will continue in the future (i.e., average returns= expected returns). Calculate the expected return, variance, and standard deviation for both stocks and insert these values in the spreadsheet. Use Average, Var, and STDEV functions.
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
Related questions
Question
Can the answer be given in excel format...
Transcribed Image Text:2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
SilTech
198.08
84.84
71.89
32.2
10.69
7.16
10.95
7.44
25.7
10.23
3.28
5.22
7.97
9.64
7.13
14.39
NewMines
21.634
34.867
44.67
49.8
49.55
46.86
53.11
48.75
63.12
37.04
31.67
21.78
14.45
9.39
14.99
10.72
Transcribed Image Text:Closing prices for SilTech and New Mines for the years 1999-2014 are shown below.
a. Calculate the total returns for each stock for the years 2000-2014 to three decimal
places. Note that the price for 1999 is used to calculate the return for 2000.
b. Assume that similar returns will continue in the future (i.e., average returns =
expected returns). Calculate the expected return, variance, and standard deviation
for both stocks and insert these values in the spreadsheet. Use Average, Var, and
STDEV functions.
Spreadsheet Exercises 219
c. Calculate the covariance between these two stocks based on the 15 years of
returns.
d. Using the 11 different proportions that SilTech could constitute of the portfolio
ranging from 0 to 100 percent in 10 percent increments, calculate the portfolio
variance, standard deviation, and expected return.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 5 images
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.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
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