Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results.Analysts across companies use realized stock returns to estimate the risk of a stock.Consider the case of Happy Dog Soap Inc. (HDS):Five years of realized returns for HDS are given in the following table. Remember:1. While HDS was started 40 years ago, its common stock has been publicly traded for the past 25 years.2. The returns on its equity are calculated as arithmetic returns.3. The historical returns for HDS for 2014 to 2018 are:2014 2015201620172018Stock return 8.75% 5.95% 10.50% 14.70% 4.55%Given the preceding data, the average realized return on HDS's stock isThe preceding data series representshistorical returns isof HDS's historical returns. Based on this conclusion, the standard deviation of HDS'sIf investors expect the average realized return from 2014 to 2018 on HDS's stock to continue into the future, its coefficient of variation (CV) will be

Given data : Year Return (%) 2014 8.75 2015 5.95 2016 10.5 2017 14.7 2018 4.55

Answered: Returns earned over a given time period…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Please please solve all parts of the question. Thank you so much.
The diversifiable risk of a portfolio:a. Is correlated with systematic risk.b. Can be made sufficiently small.c. Is zero in the real world.d. Is the risk that investors lose because of transaction costs.
The accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (a) through (k). O A. OB. 0.50- 0.50- 0.00- 0.00- -0.50- -0.50- -0.3 RR of Company 2 0.0 0.3 -0.3 0.0 0.3 RR of Company 1 OC. 0.30- 0.50- 0.00- 0.00- -0.30- -0.50- o.0 0'5 0.0 0.3 -0.5 RR of Company 2 0.5 -0.3 RR of Company 1 (b) Determine the correlation coefficient between rate of return of Company 1 and Company 2. The correlation coefficient is 0.966. (Round to three decimal places as needed.) (c) Based on the scatter diagram and correlation coefficient, is there a linear relation between rate of return of Company 1 and Company 2? Yes No (d) Find the least-squares regression line treating the rate of return of Company 1 as the explanatory variable. y=x+O (Round to four decimal places as needed.) RR of Company 1 RR of Company 1 RR of Company 2 RR of Company 2
.A new, miracle diabetes drug that diminishes major symptoms of diabetes has been approved by the FDA. Health care professionals and researchers believe that the new drug will prolong lifespan of diabetes patients. If the population is in steady state and the incidence is constant, what will the effect of this new drug be on the prevalence of diabetes in the population? Explain.
If a fictional treatment costs a total of $45,000 at today’s value and increases a person’s quality of life from 0.5 to 0.6 for the remainder of the person’s life from age 70 onward, and the person’s expected life span increases from 73 to 75, what is the total gain in QALYs (Quality-adjusted Life Years), and what is the ICER (Incremental Cost-effectiveness Ratio)?
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 80 stocks traded on the NYSE that day showed that 11 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=0.02α=0.02.What is the test statistic for this sample? (Report answer accurate to three decimal places.)test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.)p-value = The p-value is... less than (or equal to) αα greater than αα This test statistic leads to a decision to... reject the null accept the null fail…
The table below gives data on three movies. Gross earnings is the amount of money the movie brings in. Compare the net earnings (money made after expenses) for the three movies. Which provided the best return on investment? Release Date 10/29/2004 12/19/1997 $200,000,000 | Jurassic Park | 06/11/1993 | $63,000,000 Movie Saw Titanic Budget $1,200,000 Gross Earnings $103,096,345 $1,842,879,955 $923,863,984
Discuss two extensions to the original GARCH (p,q) model and explain additional characteristics of financial data they might be able to capture.
The R-squared of a regression of an asset’s excess returns against a multi-factor asset pricing model indicates the proportion of the asset’s total volatility that is non-systematic. True False
From the data in the table it shows the 2019 daily return data for the S&P 500 Index (stocks) and the US 30 year Bond (bonds). How do I test the hypothesis that mean daily return on stocks exceeds the mean daily return on bonds? Please show the steps. S&P500 dailt returns data: Date Price Daily Return 2019-12-31 3230.78 0.294602% 2019-12-30 3221.29 -0.578082% 2019-12-27 3240.02 0.003398% 2019-12-26 3239.91 0.512817% 2019-12-24 3223.38 -0.019545% 2019-12-23 3224.01 0.086614% 2019-12-20 3221.22 0.494478% 2019-12-19 3205.37 0.445929% 2019-12-18 3191.14 -0.043230% 2019-12-17 3192.52 0.033529% US 30 Year Bond Date Price Daily Return 31-Dec-19 2.389 2.32% 30-Dec-19 2.335 0.78% 29-Dec-19 2.317 -0.03% 27-Dec-19 2.318 -0.16% 26-Dec-19 2.321 -0.71% 25-Dec-19 2.338 0.15% 24-Dec-19 2.334 -0.83% 23-Dec-19 2.354 0.31% 22-Dec-19 2.346 0.12% 20-Dec-19 2.344 -0.43%
Compute the NPV statistic for Project Y if the appropriate cost of capital is 12 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Y Time: 1 2 3 4 Cash flow: -$8,000 $3,350 $4,180 $1,520 $300
According to a high-profile realtor, houses in the sleepy town of Sun Beach have shown higher appreciation over the past three years than have houses in the bustling town of North Arden. To test the realtor's claim, an economist has found twelve recently sold homes in Sun Beach and twelve recently sold homes in North Arden that were owned for exactly three years. The following table gives the appreciation (expressed as a percentage increase) for each of the twenty- four houses. Appreciation rates in percent Sun Beach 12.5, 12.2, 10.4, 12.9, 6.5, 15.0, 10.1, 10.6, 12.1, 10.8, 10.4, 9.1 North Arden 9.2, 10.7, 9.7, 7.8, 9.7, 12.1, 9.4, 6.1, 7.8, 9.3, 4.6, 11.0 Send data to calculator v Assume that the two populations of appreciation rates are normally distributed and that the population variances are equal. Can we conclude, at the 0.05 level of significance, that houses in Sun Beach have higher appreciation over the past three years than houses in North Arden? Perform a one-tailed test.…

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