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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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
Consider Microsoft Corporation (MSFT) and Meta Platforms, Inc. (META) that have returns variances of 6.25% and 3.24%, respectively. Calculate the standard deviation of portfolio returns for an equal-weighted portfolio of the two assets when their correlation of returns is 0. A. 24.71% B. 19.20% C. 15.40% D. 10.28%
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 %
please show steps in excel
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.
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Using the following annual returns, calculate the estimates of the arithmetic mean returns, the variances, and the standard deviations for assets X and Y. Also calculate the estimates of the covariance and correlation between X and Y. These five years are a sample of the entire population of returns for X and Y. Year 2001 2002 2003 2004 2005 Returns X 11% 6% -8% 28% 13% Y 36% -7% 2% -12% 43% A stock has had returns over the past six years of 29%, 14%, 23%, -18%, 9%, and -14%. What was its arithmetic mean and geometric mean returns over that period? What was the standard deviation of its returns over this six-year period?

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