R(S&P 500) AMZN Average 2.59% 4.36% Variance 0.00085 0.00660 St. Dev. 5.32% 8.13% Intercept 0.0302 Beta 1 1.6811 Var (ei) 0.0042 St. Dev. (ei) 6.48% Rf 0.40% 10. Based on the data in the tables above, what is the Jehnsen Alpha for AMZN? A. 0.92% B. 0.28% C. 0.18% D. -0.74% 11. Based on the data in the tables above, what is M² for AMZN (Sharpe Ratio for S&P 500 is 0.41165)? A. 3.02% B. 3.08% C. 0.825% D. 0.401% 12. Based on the data in the tables above, what is the Potential Sharpe Ratio for AMZN if it is added to a current investor's holding of an SPY index fund? Sharpe Ratio for S&P 500 is 0.41165, SPY is proxy for S&P 500. A. 0.2592 B. 0.3659 C. 0.6218 D. 0.7549

R(S&P 500) AMZN Average 2.59% 4.36% Variance 0.00085 0.00660 St. Dev. 5.32% 8.13% Intercept 0.0302 Beta 1 1.6811 Var (ei) 0.0042 St. Dev. (ei) 6.48% Rf 0.40% 10. Based on the data in the tables above, what is the Jehnsen Alpha for AMZN? A. 0.92% B. 0.28% C. 0.18% D. -0.74% 11. Based on the data in the tables above, what is M² for AMZN (Sharpe Ratio for S&P 500 is 0.41165)? A. 3.02% B. 3.08% C. 0.825% D. 0.401% 12. Based on the data in the tables above, what is the Potential Sharpe Ratio for AMZN if it is added to a current investor's holding of an SPY index fund? Sharpe Ratio for S&P 500 is 0.41165, SPY is proxy for S&P 500. A. 0.2592 B. 0.3659 C. 0.6218 D. 0.7549

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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Year INM +5 3 4 Returns 14% 28 9 10 Y 18% 29 10 -26 20 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16, and round the variance answers to 5 decimal places, e.g., 16161.) Average returns Variances Standard deviations X 8.00 % 17.90 % Y 10,20 % 21.34 %
Isn't the 0.0592 in part 2 the variance? By squaring that you should get 24%?
Use the following returns for X and Y. Year 1 2 3 4 5 Returns X 22.1% -17.1 10.1 20.2 5.1 Y 27.3% -4.1 29.3 -15.2 33.3 a. Calculate the average returns for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the variances for X and Y. Note: Do not round intermediate calculations and round your answers to 6 decimal places, e.g., .161616. c. Calculate the standard deviations for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. X Answer is complete but not entirely correct. X 8.06 a. Average return b. Variance c. Standard deviation 136.454400 % 11.67 X % Y 14.04 377.286400 x % 19.42%
Returns Year X Y 12345 11% 18% 25 26 11 10 -18 10 -23 17 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16, and round the variance answers to 5 decimal places, e.g., .16161.) X Y Average returns Variances 7.80 % 9.60% 0.01974 0.02947 Standard deviations 14.05 % 17.17%
Year a. b. 12345 C. Returns X 22.0% 17.0 10.0 20.0 5.0 a. Calculate the average returns for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the variances for X and Y. (Do not round intermediate calculations and round your answers to 6 decimal places, e.g., 32.161616.) c. Calculate the standard deviations for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Y 27.0% 4.0 29.0 - 15.0 33.0 X Answer is complete but not entirely correct. Average return Variance Standard deviation X 8.00 2.445000 x 15.64 % % Y 14.72 X % 4.501920 X 21.22 X %
Returns Year X Y 12345 11% 18% 25 26 11 10 -18 10 -23 17 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16, and round the variance answers to 5 decimal places, e.g., .16161.) X Y Average returns % % Variances Standard deviations % %
Use the following returns for X and Y. Returns Year x y 1 21.8% 26.4% 2 -16.8 -3.8 3 9.8 28.4 4 19.6 -14.6 5 4.8 32.4 a. Calculate the average returns for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the variances for X and Y. (Do not round intermediate calculations and round your answers to 6 decimal places, e.g., 32.161616.) c. Calculate the standard deviations for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
q8- When visualising the distribution of a variable using a histogram, if only the right tail has outliers, the data distribution is: a. Right-skewed b. Normal c. Left-skewed d. Uniform
Given the following historical returns, what is the variance? Year 1 = 9%; year 2 = -11%; year 3 = 8%; year 4 = -12%; and year 5 = -9%. the correct answer is .0112. How was that found? Please do not answer in excel format
Consider a population proportion p = 0.20. a. What are the expected value and the standard error for the sampling distribution of the sample proportion with n = 20 and n = 58? Note: Round the standard error to 4 decimal places. Answer is complete and correct. n Expected value Standard error 20 58 0.20 0.20 0.0894 0.0525 b. Can you conclude that the sampling distribution of the sample proportion is approximately normally distributed for both sample sizes? Yes, the sampling distribution of the sample proportion is normally distributed for both sample sizes. No, the sampling distribution of the sample proportion is not normally distributed for either sample size. No, only the sample proportion with n = 20 will have a normal distribution. No, only the sample proportion with n = 58 will have a normal distribution. c. If the sampling distribution of the sample proportion is normally distributed with n = 20, then calculate the probability that the sample proportion is between 0.18 and 0.20.…
4. Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Year 1 2 3 4 5 X 12% 28% 9% -7% 10% Return Y 25% 34% 13% -27% 14%

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