Megaworld Corporation has the following returns for the past three years: 7 percent, 13 percent, and 10 percent. Use the following formulas te calculate the variance of the returns and the standard deviation of the returns: Variance (m) = expected value of (mm)² Standard deviation of m=√√variance(rm). 30.00 and 10.00% 124.00 and 11.10%

Megaworld Corporation has the following returns for the past three years: 7 percent, 13 percent, and 10 percent. Use the following formulas te calculate the variance of the returns and the standard deviation of the returns: Variance (m) = expected value of (mm)² Standard deviation of m=√√variance(rm). 30.00 and 10.00% 124.00 and 11.10%

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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Returns for the Alcoff Company over the last 3 years are shown below. What's the standard deviation of the firm's returns? (Hint:This is a sample, not a complete population, so the sample standard deviation formula should be used. Year Return 2010 21.00% 2009 −12.50% 2008 38.40% Select the correct answer. A. 25.78% B. 25.87% C. 25.81% D. 25.84% E. 25.90%
A stock had returns of 17.53 percent, -4.95 percent, 20.18 percent, and 8.47 percent for the past four years. What is the variance of the returns? Multiple Choice 01715 01286 01543 00606 11340
The returns of Oman Cement for the last four years are Year 1=10, Year 2=12, Year 3=(-15), Year 4=25. The average return and variance of Oman Cement is Select one: a. Average Return=7, Variance3D278.50 O b. Average Return=8, Variance3D209.50 O c. Average Return=5, Variance3D176.50 O d. None of the options O e. Average Return=8, Variance=D188.87
Maroon has an expected return of 21%, and a variance of 0.014. Gray has an expected return of 15%, and a variance of 0.009. The covariance between Maroon and Gray is 0.06. Using these data, calculate the variance of a portfolio consisting of 55% Maroon and 45% Gray. 0.18910 0.03576 0.01175 0.03526 0.00794
Here are the returns on two stocks. A. Calculate the variance and standard deviation of each stock. Which stock is riskier if he'll on its own? B. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks C. Is the variance more or less than halfway between the variance of the two Individual stocks?
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 17 percent, -4 percent, 20 percent, 12 percent, and 10 percent. a. What was the arithmetic average return on Crash-n-Burn's stock over this five-year period? (Round your answer to 1 decimal place. (e.g., 32.1)) Average return % b-1What was the variance of Crash-n-Burn's returns over this period? (Round your answer to 5 decimal places. (e.g., 32.16161)) Variance b-2What was the standard deviation of Crash-n-Burn's returns over this period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Standard deviation %
The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 2.00 and a residual standard deviation of 30%. Calculate the total variance for an increase of 0.10 in its beta. A. Total variance will increase from 2,500 to 2,664. B. Total variance will increase from 2,500 to 2,774. C. Total variance will increase from 2,600 to 2,664. D. Total variance will increase from 2,600 to 2,774.
6. The last four years of returns for a stock are as follows: Year Return 2 28.5% 1 - 4.2% 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? a. What is the average annual return? The average return is b. What is the variance of the stock's returns? The variance of the returns is 3 12.3% The standard deviation is %. (Round to two decimal places.) 3.6% c. What is the standard deviation of the stock's returns? (Round to five decimal places.) %. (Round to two decimal places.)
Returns for the Alcoff Company over the last 3 years are shown below. What's the standard deviation of the firm's returns? (Hint: This is a sample, not a complete population, so the sample standard deviation formula should be used.) Year Return 2010 21.00% 2009 -12.50% 2008 25.00% a. 20.08% b. 20.59% c. 21.11% d. 21.64% e. 22.18%
The last four years of returns for a stock are as shown here: 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. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 4 Return +3.51% 1 - 4.17% 2 +27.82% 3 + 11.88% X
Over the past five years, a stock returned -2.73 percent, 14.66 percent, 15.19 percent, 3.43 percent, and 5.49 percent, respectively. What is the variance (as a decimal fraction) of these returns? Carry intermediate calculations to six decimals. Answer to four decimals. Your answer should look something like 0.0123, or 0.0024.
B O A stock had returns of 14.83 percent, 19.47 percent, -17.19 percent, 12.59 percent, and 27.07 percent for the past five years. What is t variance of the returns? O Multiple Choice 16891 .02853 .03804 .00378 .03424

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