**Computing Rates of Return**From the following price data, compute the annual rates of return for Asman and Salinas stocks.| Time | Asman | Salinas ||------|-------|---------|| 1 | $10 | $30 || 2 | 12 | 28 || 3 | 11 | 32 || 4 | 13 | 35 |---**How would you interpret the meaning of the annual rates of return?**1. The rate of return you would have earned on Asman stock from time 1 to time 2 is ___%. (Round to two decimal places.)2. The rate of return you would have earned on Asman stock from time 2 to time 3 is ___%. (Round to two decimal places.)3. The rate of return you would have earned on Asman stock from time 3 to time 4 is ___%. (Round to two decimal places.)4. The rate of return you would have earned on Salinas stock from time 1 to time 2 is ___%. (Round to two decimal places.)5. The rate of return you would have earned on Salinas stock from time 2 to time 3 is ___%. (Round to two decimal places.)6. The rate of return you would have earned on Salinas stock from time 3 to time 4 is ___%. (Round to two decimal places.)---**Explanation of Table:**The table lists the price of two stocks, Asman and Salinas, at four different time points. To calculate the rate of return for each period, compare the price change of each stock from one time point to the next and express it as a percentage. The rate of return provides insight into the stock's performance over specified intervals. **Understanding Annual Rates of Return**When interpreting the meaning of annual rates of return, especially when no dividends are paid, consider the following options:- **Option A**: The annual rate of return with no dividends paid is calculated as the price at the beginning of one period subtracted from the price at the end of the period, divided by the price at the beginning of the period.- **Option B**: The annual rate of return with no dividends paid is assessed as the price at the end of one period subtracted from the price at the beginning of the period, divided by the price at the beginning of the period.- **Option C**: The annual rate of return with no dividends paid is determined by subtracting the price at the beginning of the period from the price at the end of one period, then dividing by the price at the end of the period.- **Option D**: The annual rate of return with no dividends paid is the difference between the price at the beginning of one period and the price at the end of the period, divided by the price at the end of the period.**Note**: Make sure to select the most accurate interpretation for the annual rate of return that applies to your analysis.

Annual rate of return = (Ending price - Beginning price) / Beginning price * 100%Part AOption B The…

(Computing rates of return) From the following price data, compute the annual rates of return for Asman and Salinas. Asman $10 12 11 13 Time 1 2 3 4 Salinas $30 28 32 35 How would you interpret the meaning of the annual rates of retum? The rate of return you would have earned on Asman stock from time 1 to time 2 is%. (Round to two decimal places.) The rate of return you would have eamed on Asman stock from time 2 to time 3 is%. (Round to two decimal places.) The rate of return you would have eamed on Asman stock from time 3 to time 4 is%. (Round to two decimal places.) The rate of return you would have earned on Salinas stock from time 1 to time 2 is%. (Round to two decimal places.) The rate of return you would have earned on Salinas stock from time 2 to time 3 is %. (Round to two decimal places.) The rate of return you would have earned on Salinas stock from time 3 to time 4 is %. (Round to two decimal places.)

(Computing rates of return) From the following price data, compute the annual rates of return for Asman and Salinas. Asman $10 12 11 13 Time 1 2 3 4 Salinas $30 28 32 35 How would you interpret the meaning of the annual rates of retum? The rate of return you would have earned on Asman stock from time 1 to time 2 is%. (Round to two decimal places.) The rate of return you would have eamed on Asman stock from time 2 to time 3 is%. (Round to two decimal places.) The rate of return you would have eamed on Asman stock from time 3 to time 4 is%. (Round to two decimal places.) The rate of return you would have earned on Salinas stock from time 1 to time 2 is%. (Round to two decimal places.) The rate of return you would have earned on Salinas stock from time 2 to time 3 is %. (Round to two decimal places.) The rate of return you would have earned on Salinas stock from time 3 to time 4 is %. (Round to two decimal places.)

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

Similar questions

You have the following information: t1 t2 t3 t4 TSLA Returns 0.05 -0.04 0.1 -0.01 Market Returns 0 -0.04 0.01 0.01 What is the Covariance of TSLA and the Market? Type your answer as decimal (i.e. 0.052 and not 5.2%). Round your answer to the nearest four decimals if needed.
provide step by step explaination (no excel)
1.) On a single chart, plot the value of $1 invested in each of the five indexes over time. I.e., for all ??, plot the cumulative return series for each index: ?????? = (1 + ?��1)(1 + ?��2)...(1 + ????) What patterns do you observe? (10 points) 2.) Plot a histogram of only the Global index returns. Does the distribution look normal? (5 points) 3.) Estimate the following for each of the indices. In calculating the statistics, “monthly” can be interpreted as “not annualized”. (30 points) a. Arithmetic average of monthly returns, and annualized arithmetic return using the APR method b. Geometric average of monthly returns, and annualized geometric return using the EAR method. Why does the geometric average differ from the arithmetic average? c. Standard deviation of monthly returns, and annualized standard deviation d. Sharpe Ratio of monthly returns, and annualized Sharpe Ratio e. Skewness of monthly returns f. Kurtosis of monthly returns g. 5% Value at Risk (VaR) of…
You have the following information: t1 t2 t3 t4 TSLA Returns 0.05 -0.04 0.1 -0.01 Market Returns 0 -0.04 0.01 0.01 What is the Covariance of TSLA and the Market? Type your answer as decimal (i.e. 0.052 and not 5.2%). Round your answer to the nearest four decimals if needed.
What is the expected return of Stock B given the information below about its returns across future states of nature? Enter return in decimal form, rounded to 4th digit, as in "0.1234"
Review the excerpted table of historic returns shown below. The returns have all been annualized after having calculated monthly returns for the previous five years. In addition, information is provided about the average, the volatility, and the sensitivity of the possible investments. Time Period # Market Return Firm W Firm X Firm Y Firm Z T-Bill 1 0.333 0.191 0.218 0.955 0.601 0.035 2 -0.144 -0.423 -0.632 -0.747 -0.472 0.039 3 0.143 0.348 0.470 0.379 0.378 0.040 4 0.316 0.871 0.868 -0.192 0.502 0.036 5 0.178 0.912 0.499 0.694 0.364 0.036 6 -0.014 0.532 0.168 -0.671 -0.064 0.038 … … … … … … … … … … … … … … 59 0.374 0.556 1.014 0.023 0.698 0.037 60 0.173 0.547 0.092 0.658 0.222 0.036 Average Return 0.082 0.113 0.067 0.167 0.121 0.029 Standard…
How can I calculate geometric average in Excel?
The following regression model was estimated to forecast the value of the Malaysian ringgit (MYR): MYR Fao+a+INC+a₂INF+U where MYR is the quarterly change in the ringgit, INF is the previous quarterly percentage change in the inflation differential, and INC is the predious quarterly percentage change in the income growth differential. Regression results indicato coeficients ao-0.004; a₁-0.6; and az -0.5. The most recent quarterly percentage change in the income differential is -1%, while the most recent quarterly percentage change in the inflation differential is -7%. Using this information, the forecast for the percentage change in the ringgit is % (1 decimal place please; note % is already given, so if you find an answer of .055, you will need to enter 5.5 for the correct answer because .055-5.5%)
Consider that you have $4,332,989 to invest across three assets using the price weighted methodology. Your analysis of these assets has provided the information in the two tables below. (Note: numbers in red are negative) Asset Price at beginning of the year (in $) Expected price at the end of the year (in $) Standard deviation (%) Correlation A B C A 1.00 0.84 0.78 c. In dollars and cents, what is the expected value of this portfolio after 12 months? d. What is the standard deviation of this portfolio, in percentage terms? A B 155.55 137.22 182.22 164.77 42.11 Required a. What is the expected compound annual growth rate of return for this portfolio, in percentage terms? b. What is the expected continuously compounded return on this portfolio in percentage terms? B 0.84 1.00 0.44 41.50 с 0.78 0.44 1.00 C 88.14 104.12 42.33
he last four years of returns for a stock are as shown here: LOADING... . a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. Question content area bottom Part 1 a. What is the average annual return? The average return is enter your response here%. (Round to two decimal places.) Part 2 b. What is the variance of the stock's returns? The variance of the returns is enter your response here. (Round to five decimal places.) Part 3 c. What is the standard deviation of the stock's returns? The standard deviation is enter your response here%. (Round to two decimal places.) Time Remaining: 00:26:16 pop-up content starts Data table (Click on the following icon in order…
es Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 5.7 percent and the standard deviation was 18.3 percent. a. What is the probability that your return on this asset will be less than -4.1 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What range of returns would you expect to see 95 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What range of returns would you expect to see 99 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter…
Calculate the correlation coefficient (PAB) for the following situation: (Round intermediate calculations and the final answer to 4 decimal place, e.g. 0.2921.) State of the Probability of Expected return on Expected return on economy occurrence stock A in this state stock B in this state High growth 30% 39.5% 56.5% Moderate 25% 18.5% 26.5% Recession 45% -6.5% -16.5% Correlation coefficient

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