12AInvestment3Broad Stock Market Index4 Small Capitalization Market Index5Local Casino678910 YearlyDailyMonthlyTime PeriodBProbability of PriceIncrease, DailyTime0.50300.50050.4900130365CProbability of PriceDecrease, DailyExpected Return: Daily15 (Use cells A3 to D10 from the given information to complete this question.)1617Stock Name18 Broad Stock Market Index19 Small Capitalization Market Index20 Local Casino21220.49700.49950.5100DExpected Return:MonthlySize of Price Change0.05500.10500.0500E1112 Required:13Using the information in the tables above, please calculate the expected return of each investment over one day, one month, and one year.14Expected ReturnYearlyFபடG

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Description: 12AInvestment3Broad Stock Market Index4 Small Capitalization Market Index5Local Casino678910 YearlyDailyMonthlyTime PeriodBProbability of PriceIncrease, DailyTime0.50300.50050.4900130365CProbability of PriceDecrease, DailyExpected Return: Daily15 (U

"Expected return" in finance refers to the anticipated or average gain or loss that an investment is…

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Investment Broad Stock Market Index Small Capitalization Market Index Local Casino Daily Monthly Yearly Time Period Probability of Price Increase, Daily Time 0.5030 0.5005 0.4900 1 30 365 Probability of Price Decrease, Daily 0.4970 0.4995 0.5100 Size of Price Change 0.0550 0.1050 0.0500 Required: Using the information in the tables above, please calculate the expected return of each investment over one day, one month, and one year. (Use cells A3 to D10 from the given information to complete this question.)

Investment Broad Stock Market Index Small Capitalization Market Index Local Casino Daily Monthly Yearly Time Period Probability of Price Increase, Daily Time 0.5030 0.5005 0.4900 1 30 365 Probability of Price Decrease, Daily 0.4970 0.4995 0.5100 Size of Price Change 0.0550 0.1050 0.0500 Required: Using the information in the tables above, please calculate the expected return of each investment over one day, one month, and one year. (Use cells A3 to D10 from the given information to complete this question.)

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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Required: Using Table 5.3 as your guide, what is your estimate of the expected annual HPR on the market index stock portfolio if the current risk- free interest rate is 4.3% ? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. 0.120 Expected annual HPR TABLE 5.3 Risk and return of investments in major asset classes, 1927-2018 Average Risk premium Standard deviation max min T-bills 3.38 na 3.12 14.71 -0.02 T-bonds 5.83 2.45 11.59 41.68 -25.96 Stocks 11.72 8.34 20.05 57.35 -44.04
Ten annual returns are listed in the following table: - 19.1% 16.8% 18.3% - 49.8% Click on the following icon to copy the data into a 43.3% spreadsheet.() 1.2% a. The arithmetic average return over the 10-year period is - 16.2% a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how much would you have at the end? 45.7% (Round to four decimal places.) 44.7% 3.9%
Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager's portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, the benchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4. Actual Return Equity Bonds Cash 2% 1 0.5 Required: Actual Weight 0.70 0.20 0.10 Benchmark Weight 0.60 0.30 0.10 Index Return 2.5% (S&P 500) 1.2 (Barclay's Aggregate) 0.5 a-1. What was the manager's return in the month? Note: Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places. The manager's return in the month is % a-2. What was her overperformance or underperformance? Note: Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places. %
For Finance class: What are the equations to use for end-of-year price per share? Turnover rate? Annual rate of return? rate of return with load expenses and multiple years?
Data are given as follows: (all the values are in percent) Month Average portfolio return market Average Average risk-free return rate 2.464 3.360 0.090 16.130 2.348 0.090 0.771 -1.484 0.120 -6.386 -2.437 0.120 15 -2.861 1.965 0.090 16 -7.673 2.806 0.120 0.805 -5.721 0.150 -0.372 0.327 0.150 1.508 2.464 0.150 10 2.003 2.250 0.150 11 -4.723 6.639 0.210 12 Calculate Treynor measure, Sharpe ratio, tracking error, information ratio, and hit ratio. Then, evaluate the performance of this portfolio. 2.383 4.874 0.210
Consider the case of two financial assets and three market conditions (states). The tablebelow gives the respective probability for each market condition and the return of each assetin each one of them. Market Conditions State Recession Normal Expansion Probability of state 30% 40% 30% Return of asset A -30% 20% 55% Return of asset B -10% 70% 0% Consider the portfolio with 50% investment in each of the two assets above. Calculatethe expected return and the standard deviation of the portfolio.
Use the following output from a market model regression of the weekly percentage returns on the AIG commodities index on a market index to answer questions a. - f. a. What is the formula for the Commodities Index' characteristic line? b. You forecast a market return of 1.0% for next week. What is next week's expected return for the commodities index? c. What is the correlation between the return on the commodities index and the return on the market Index? d. How much of the variation in the commodities index's returns are explained by the model? e. Based on these regression results, the commodities index would be considered what kind of an investment? f. Does this regression have much explanatory power? Why or why not?
View Policies Current Attempt in Progress Calculate the correlation coefficient (PA) for the following situation: (Round intermediate calculations and the final answer to 4 decimal place, e.g. 0.2921.) State of the economy High growth Moderate Recession Probability of Expected return on occurrence stock A in this state 47.0% 26.0% -14.0% 25% 20% 55% Correlation coefficient Expected return on stock B in this state 64.0% 34.0% -24.0%
The following table..shows the one-year return distribution of Startup, Inc. Calculate: a. The expected return. b. The standard deviation of the return. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) 40% Probability Return - 80% 20% -65% 20% - 40% 10% -20% 10% 1,000%

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