Directions: Compute the total returns, the average of returns, and the standard deviation of the following stocks: 1) EGRH Inc. YEAN 3) Jan-2021 PO. Feb-2021 PO.090 Mar-2021 P0.097 Apr-2021 PO.189 May-2021 PO.164 Jun-2021 P0.495 Jul-2021 PO.28 Aug-2021 PO Sep-2021 90 Oct-2021 0.375 Nov-20 PO.325 Dec-2 P0.330 STOCK RETURN PRICE (x₁) SD (8) = GSM Inc. YEAR STOCK RETURN PRICE (x₁) Jan-2021 P57.70 Feb-2021 P52.90 Mar-2021 P50.95 Apr-2021 P58.25 May-2021 P74.05 Jun-2021 P94.75 Jul-2021 P85.00 Aug-2021 P105.00 Sep-2021 P114.00 Oct-2021 | P101.00 Nov-2021 P100.40 Dec-2021 P113.80 SD (8) = AVERAGE OF RETURNS-x)² AVERAGE OF RETURNS 2) MP, Ltd. YEAR Jan-2021 Po Feb-2021 P8.6 STOCK RETURN PRICE Mar-2021 P9.14 Apr-2021 P13.30 May-2021 P13 Jun-2021 P60 Jul-2021 Aug-202 Sep-2 Oct 21 P15.30 N 2021 P14.30 ec-2021 P15.52 ACEE, Inc. YEAR 16.94 P13.70 P14.88 SD (8) = STOCK PRICE Jan-2021 P13.56 Feb-2021 P20.80 Mar-2021 P22.50 Apr-2021 P18.90 May-2021 P17.00 Jun-2021 P18.76 Jul-2021 P16.38 Aug-2021 Sep-2021 Oct-2021 P18.62 Nov-2021 P22.95 Dec-2021 P39.00 P15.00 P15.40 RETURN (x₁) SD (8) = AVERAGE OF RETU (Xi-x)2 AVERAGE OF RETURNS (XI-X)²
Directions: Compute the total returns, the average of returns, and the standard deviation of the following stocks: 1) EGRH Inc. YEAN 3) Jan-2021 PO. Feb-2021 PO.090 Mar-2021 P0.097 Apr-2021 PO.189 May-2021 PO.164 Jun-2021 P0.495 Jul-2021 PO.28 Aug-2021 PO Sep-2021 90 Oct-2021 0.375 Nov-20 PO.325 Dec-2 P0.330 STOCK RETURN PRICE (x₁) SD (8) = GSM Inc. YEAR STOCK RETURN PRICE (x₁) Jan-2021 P57.70 Feb-2021 P52.90 Mar-2021 P50.95 Apr-2021 P58.25 May-2021 P74.05 Jun-2021 P94.75 Jul-2021 P85.00 Aug-2021 P105.00 Sep-2021 P114.00 Oct-2021 | P101.00 Nov-2021 P100.40 Dec-2021 P113.80 SD (8) = AVERAGE OF RETURNS-x)² AVERAGE OF RETURNS 2) MP, Ltd. YEAR Jan-2021 Po Feb-2021 P8.6 STOCK RETURN PRICE Mar-2021 P9.14 Apr-2021 P13.30 May-2021 P13 Jun-2021 P60 Jul-2021 Aug-202 Sep-2 Oct 21 P15.30 N 2021 P14.30 ec-2021 P15.52 ACEE, Inc. YEAR 16.94 P13.70 P14.88 SD (8) = STOCK PRICE Jan-2021 P13.56 Feb-2021 P20.80 Mar-2021 P22.50 Apr-2021 P18.90 May-2021 P17.00 Jun-2021 P18.76 Jul-2021 P16.38 Aug-2021 Sep-2021 Oct-2021 P18.62 Nov-2021 P22.95 Dec-2021 P39.00 P15.00 P15.40 RETURN (x₁) SD (8) = AVERAGE OF RETU (Xi-x)2 AVERAGE OF RETURNS (XI-X)²
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
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
![Directions: Compute the total returns, the average of returns, and the standard deviation of
the following stocks:
1)
2)
EGRH Inc.
MP, Ltd.
STOCK RETURN
AVERAGE
OF
YEA
AVERAGE
OF
RETURNS
(x)
YEAR
STOCK RETURN
PRICE (x₁)
PRICE
RETU
Jan-2021
Po
Feb-2021
P8.6
Jan-2021 PO.
Feb-2021 PO.090
Mar-2021 P0.097
Apr-2021 PO.189
May-2021 PO.164
Mar-2021
P9.14
Apr-2021 P13.30
May-2021 P13
Jun-2021
P60
Jul-2021
16.94
Jun-2021 P0.495
Jul-2021 PO.28
Aug-2021 PO
Sep-2021 90
Aug-202 P13.70
Sep-2
P14.88
Oct-2021 0.375
Oct 21 P15.30
Nov-20 PO.325
N2021
P14.30
Dec-2
PO.330
ec-2021
P15.52
3)
SD (8)
GSM Inc.
STOCK
YEAR
PRICE
Jan-2021 P57.70
Feb-2021 P52.90
Mar-2021 P50.95
Apr-2021 P58.25
May-2021 P74.05
Jun-2021 P94.75
Jul-2021 P85.00
Aug-2021 P105.00
Sep-2021 P114.00
Oct-2021 | P101.00
Nov-2021 P100.40
Dec-2021 P113.80
SD (8) =
RETURN
(x₁)
-x)²
AVERAGE
OF
RETURNS (x-x)²
(x)
SD (8) =
ACEE, Inc.
YEAR
STOCK RETURN
PRICE
(x₁)
Jan-2021
P13.56
Feb-2021 P20.80
Mar-2021 P22.50
Apr-2021 P18.90
May-2021 P17.00
Jun-2021 P18.76
Jul-2021 P16.38
Aug-2021
P15.00
Sep-2021
P15.40
Oct-2021
P18.62
Nov-2021 P22.95
Dec-2021
P39.00
SD (8) =
AVERAGE
OF
RETURNS
(XI-x)2
(XI-X)2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdbea8e7c-3dad-4b89-9cfe-274c7eebd0d6%2Ff6bfc965-1d29-48b9-9f7d-ca718f1031ba%2Fqpmums_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Directions: Compute the total returns, the average of returns, and the standard deviation of
the following stocks:
1)
2)
EGRH Inc.
MP, Ltd.
STOCK RETURN
AVERAGE
OF
YEA
AVERAGE
OF
RETURNS
(x)
YEAR
STOCK RETURN
PRICE (x₁)
PRICE
RETU
Jan-2021
Po
Feb-2021
P8.6
Jan-2021 PO.
Feb-2021 PO.090
Mar-2021 P0.097
Apr-2021 PO.189
May-2021 PO.164
Mar-2021
P9.14
Apr-2021 P13.30
May-2021 P13
Jun-2021
P60
Jul-2021
16.94
Jun-2021 P0.495
Jul-2021 PO.28
Aug-2021 PO
Sep-2021 90
Aug-202 P13.70
Sep-2
P14.88
Oct-2021 0.375
Oct 21 P15.30
Nov-20 PO.325
N2021
P14.30
Dec-2
PO.330
ec-2021
P15.52
3)
SD (8)
GSM Inc.
STOCK
YEAR
PRICE
Jan-2021 P57.70
Feb-2021 P52.90
Mar-2021 P50.95
Apr-2021 P58.25
May-2021 P74.05
Jun-2021 P94.75
Jul-2021 P85.00
Aug-2021 P105.00
Sep-2021 P114.00
Oct-2021 | P101.00
Nov-2021 P100.40
Dec-2021 P113.80
SD (8) =
RETURN
(x₁)
-x)²
AVERAGE
OF
RETURNS (x-x)²
(x)
SD (8) =
ACEE, Inc.
YEAR
STOCK RETURN
PRICE
(x₁)
Jan-2021
P13.56
Feb-2021 P20.80
Mar-2021 P22.50
Apr-2021 P18.90
May-2021 P17.00
Jun-2021 P18.76
Jul-2021 P16.38
Aug-2021
P15.00
Sep-2021
P15.40
Oct-2021
P18.62
Nov-2021 P22.95
Dec-2021
P39.00
SD (8) =
AVERAGE
OF
RETURNS
(XI-x)2
(XI-X)2
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