Macro Corporation has had the following returns for the past three years: -10 percent, 10 percent, and 30 percent. Use the following formulas to calculate the standard deviation of the returns:           Multiple Choice   10.00 percent   16.33 percent   18.21 percent   30.00 percent

Q: From the following table of returns, compute the arithmetic average return and compute the geometric…

A: From the following table of returns, compute the arithmetic average return and compute the geometric…

Q: Mount Rainier stock returned 16.6 percent, 3.2 percent, -8.1 percent, and 9.8 percent over the past…

A: Return refers to the income earned throughout the period on an investment, It includes the cash…

Q: A stock had returns of 18.58 percent, −5.58 percent, and 20.81 percent for the past three years.…

A: Any sum infused into multiple avenues available in the market to earn income and create wealth is an…

Q: Compute the standard deviation of the five monthly returns for PG&E: 1.25 percent, −1.50 percent,…

A: Standard Deviation is a measure of risk. In other words, It measures the extent of variability of…

Q: You've observed the following returns on SkyNet Data Corporation's stock over the past five years:…

A: Average Return :  Standard deviation : Standard deviation is an overall risk of a security. It is an…

Q: Use the means and standard deviations of return for MSFT and TSLA in percent per month that are…

A: Opportunity set is the set of all possible portfolios that an investor may construct from a given…

Q: Your business manager forwards the following information to you. Your businesses earned a real rate…

A: To calculate the nominal rate of return we will use the below formula   Nominal rate of return =…

Q: Over a particular period, an asset had an average return of 12.1 percent and a standard deviation of…

A: Expected return of an asset is the profitability of investing in that asset. It is the percentage of…

Q: Florida Company (FC) and Minnesota Company (MC) are both service companies. Their stock returns for…

A: The correlation coefficient is a statistical measure indicating the strength and direction of a…

Q: please with proper formula.You find a particular stock has an annual standard deviation of 55…

A: Data given: Annual standard deviation of 55 %   Required:  Standard deviation for a two-month period

Q: You’ve observed the following returns on Pine Computer’s stock over the past five years: −26.4…

A: Variable in the question: YearReturn (%)1-26.4214.6332.242.8521.8

Q: An investment produced annual rates of return of​ 5%, 12%,​ 8% and​ 11% respectively over the past…

A: First, we have to calculate average mean of returns . Average mean  = (5% + 12% + 8% + 11%) / 4 =…

Q: Stock prices over 5 months are observed to be $110.00, $115.00, $98.00, $107.00, and $112.00. What…

A: The annualized standard deviation for the given prices of the stock over the months can be found by…

Q: You own Tesla that had returns of 10.35 percent, -7.20 percent, 23.50 percent, and 15.95 percent…

A: Geometric return is a method of calculating an average based on the effect of compounding of…

Q: C). Your investment in A Limited earned the following returns for the years 1996 to 1999: 30%, 40%,…

A: Year Return 1996 30% 1997 40% 1998 15% 1999 7%

Q: An investment has had returns of 15 percent, 10 percent, -16 percent, and 27 percent over the last…

A: Year Return 1 15% 2 10% 3 -16% 4 27%

Q: Mr. Fahim is estimating Beta for BSCCL using last monthly data for last 5 years. The regression…

A: Risk expressed the possibility of not getting the estimated return. One of the measurement tools of…

Q: An asset has an average return of 11.15 percent and a standard deviation of 22.89 percent. What is…

A: Maximum rate of return depends on the probability of event and standard deviation and mean expected…

Q: d. Assume the risk-free rate during this time was 4%. Calculate the Sharpe ratios for Bartman,…

A: Sharpe ratio = Return = D = DividendP1 = Price of current yearP0 = Price of previous yearTo…

Q: Compute each stock's average return, standard deviation, and coefficient of variation. (Round your…

A: Return The profit or loss an investor makes from an investment is called a return. All investors'…

Q: GM stock produced the following monthly returns (Jan.- May): 5%, 8%. -2%, 12%and 15% Ford stock…

A: Standard deviation measures the dispersion of the data and is used to calculate the risk.…

Q: ou've observed the following returns on Pine Computer's stock over the past five years: 15 percent,…

A: Standard deviation is the measure of the risk of stock and is the devaition from the mean return of…

Q: 3. Consider two investments which have each produced returns over a period of seven years.…

A: The mean of the return refers to the average return of an investment that can replace all the actual…

Q: The common stock of Mountain Farms has yiclded 14.2 percent, 11.7 percent, 2) 3.4 percent, -2.8…

A: Following information are given: Yields are :  14.2% , 11.7% , 3.4% , -2.8% , 15.8%   Arithmetic…

Q: An asset has an average return of 10.79 percent and a standard deviation of 22.71 percent. What is…

A: Maximum rate of return depends on the probability of event and standard deviation and mean expected…

Q: The past five monthly returns for Kohl’s are 3.60 percent, 3.77 percent, −1.74 percent, 9.28…

A: Here, Month Monthly return 1 3.60% 2 3.77% 3 -1.74% 4 9.28% 5 -2.62% Standard…

Q: 1 2 3 4 -19.9% 16.7% 19% -50% 5 6 7 43.2% 1.3% -16.4% ) What is the average annual return over the…

A: Average rate of return is the simple average rate of return and computed as sum of all divided by…

Q: A stock had returns of 14.43 percent, 18.87 percent, −14.99 percent, 12.39 percent, and 25.37…

A: Variance refers to the degree to which the return of a stock or asset vary over the time.

Q: sider the following annual returns of Estee Lauder and Lowe’s Companies:     Estee Lauder Lowe’s…

A: Standard deviation is the statistical measure of the risk of the stock and it is measured as…

Q: 18.93 percent, −15.21 percent, 12.41 percent, and 25.54 percent for the past five years. What is the…

A: Variance is a measure of risk and represents degree of variability in the returns of the given…

Q: Over the past 4 years an investment returned 22%, -5%, -20%, and 9%. What is the standard deviation…

A: Standard Deviation is the deviation of statistical data from its mean. It is the square root of…

Q: Review the excerpted table of historic returns shown below.  The returns have all been annualized…

A: Beta: It means the sensitivity of the stock in comparison to the market.

Q: You’ve observed the following returns on Pine Computer’s stock over the past five years: 13 percent,…

A: a. You add up all the returns and divide the amount by the number of returns to get the arithmetic…

Q: Abu has selected five consecutive financial periods to use in calculating trend percentages. He…

A: Trend analysis of financial numbers or of financial line items entails evaluating a company’s…

Q: Average Return and Standard Deviation

A: Average Return: Average return is the average of different rates at different period of times.…

Q: which stocks are undervalued or overvalued. a. Padma – 22 percent

A: Expected return from the portfolio is the weighted average of the return generated from the…

Q: Ten annual returns are listed in the following table. 1 -19.9% 2 % 3 4 16.7% 19% -50% % to 5 6 (a)…

A: Average rate of return is the simple average rate of return and computed as sum of all divided by…

Q: Over the past five years, a stock returned 8.3 percent, -32.5 percent, -2.2 percent, 46.9 percent,…

A: Formula for variance: σH2=∑t=1nRt-Rt¯2n-1Where,σH2= VarianceRt=Rate of ReturnR¯t=Rate of…

Q: A stock had returns of 17.98 percent, −5.22 percent, 20.45 percent, and 8.65 percent for the past…

A: Variance is a statistical measure that quantifies the degree of spread or dispersion in a set of…

Q: A stock had returns of 17.47 percent, -7.03 percent, and 23.78 percent for the past three years.…

A: The standard deviation calculates the deviation of the random numbers from its central value. It is…

Q: Ten annual returns are listed in the following table: (Click on the following icon in order to copy…

A: The return on investment demonstrates the earning potential of the capital invested. The return…

Q: A stock had returns of 17.53 percent, -4.95 percent, 20.18 percent, and 8.47 percent for the past…

A: The scatter in the distribution of all the data points in a data set is taken into consideration by…

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.