ing (LO4, CFA2) You are given the following total market values for an index over a five-year period. Assuming the inde index value each year. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Market values Year 1: $4,587 million Year 2: $4,665 million Year 3: $5,026 million Year 4: $4,814 million Year 5: $5,363 million Index values +

ing (LO4, CFA2) You are given the following total market values for an index over a five-year period. Assuming the inde index value each year. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Market values Year 1: $4,587 million Year 2: $4,665 million Year 3: $5,026 million Year 4: $4,814 million Year 5: $5,363 million Index values +

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

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Stocks A and B have the following historical returns:YearStock A's Returns, raStock B's Returns, ra2016(18.60%)(14.50%)201734.2520.40201814.7539.902019(1.00)(9.70)202026.7520.05a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places.Stock A:11.23%Stock B:11.23%b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign.YearPortfolio2016-16.55%201727.33201827.33%2019-5.35202023.40What would the average return on the portfolio have been during this period? Round your answer to two decimal places.11.23c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places.Stock AStock BPortfolioStandard Deviationd. Calculate the coefficient of variation for each…
Given the following yearly percentage price changes for 3 market indexes. Compute the Covariance of PSEI & SSE; SSE & RUSSELL 100 Year PSEI SSE RUSSELL 100 1 0.03 0.02 0.04 2 0.07 0.06 0.1 3 -0.02 -0.01 -0.04 4 0.01 0.03 0.03 5 0.05 0.04 0.11 6 0.07 0.06 0.1 7 -0.02 -0.01 -0.04 8 0.01 0.03 0.03 9 0.05 0.04 0.11 10 -0.06 -0.04 -0.08
A stock had a return of 6.8 percent last year. If the inflation rate was 1.2 percent, what was the approximate real return? (Enter your answer as a percent rounded to 1 decimal place.)
Why do most investors hold diversified portfolio
Consider the three stocks in the following table. P+ represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. PO 98 58 100 51 103 e 200 116 200 53 126 100 200 200 103 100 53 63 200 400 Required: Calculate the first-period rates of return on the following indexes of the three stocks: (Do not round Intermediate calculations. Round your answers to 2 decimal places.) a. A market value-weighted Index Rate of return An equally weighted index ate of return % %
Finance One-year par rate = 5%, Two-year par rate = 5.97%, Three-year par rate = 6.91%, Four-year par rate = 7.81. From these par rates, you are required to use the bootstrap method to get spot rates for year 1 to year 4 in Excel (show the calculation process as well).
Instead, assume that the index is a market cap weighted index, but it is still 550 at the end of the day on 21-Oct-2019. What is the value of the index at the end of 23-Oct-2019 after CHO has been replaced with DIY (take the answer to 2 decimal places)? AAC BZF CHO DIY 21-Oct-19 22-Oct-19 $75.00 $80.00 $150.00 $140.00 $10.00 $12.00 $106.00 $107.00 23-Oct-19 $82.00 $135.00 $8.00 $104.00 Shares Outstanding (in thousands) 1,000 800 50,000 8,000
Consider a 5-year $100 fixed notional equity-for-Libor swap, where the stock price at inception was $35. The swap is based on semi-annual payments on both legs, with an Actual/360 convention for the Libor leg. Two years after inception, on the fourth reset date, the stock price is $40. Assume that the number of days in the next period is 183, and the six-month Libor rate on this reset date is 10%. What is the value of the swap from the point of view of the receiver of equity return Zero +14.29 +4.29 O-14.29
On January 4, 2019, the DJIA opened at 10,318.80. The divisor at that time was .147855317. Suppose on this day the prices for 29 of the stocks remained unchanged and 1 stock increased $4. What would the DJIA level be at the end of the day? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Complete the table to determine the effect of the number of compounding periods when computing interest. Suppose that $11,000 is invested at 3.8% interest for 11 yr under the following compounding options. Round answers in the second column to the nearest whole number. Round answers in the last column to the nearest cent. Compounding Option n Value Result X (a) Annually n = 1 $ (b) Quarterly (c) Monthly n = 4 n = 12 (d) Daily (e) Continuously n = 365 Not Applicable Es E

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