Stocks A and B have the following historical returns: Year PA 2009 -17.30% -15.10% 2010 36.75 24.70 2011 18.50 38.60 2012 -2.25 -7.20 2013 31.75 28.45 Calculate the average rate of return for each stock during the past 5-year period of time.
Q: Calculate the average stock return from 2005–2007, the standard deviation and coefficient of…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Data table (Click on the following icon in order to copy its contents into a spreadsheet.)…
A: Portfolio standard deviation represents the risk or volatility of the portfolio. It gives the…
Q: Three years ago, Green Thumb Industries (ticker symbol: GTBIF) had a stock return of 17.11%. What is…
A: Standard deviation is the variability in the stock returns over a period of time. The standard…
Q: Stock Z has the following returns for last five years. Calculate the arithmetic average return and…
A: Returns refers to incremental amount over initial investment that an investor expects to receive…
Q: The table below provides the realized annual returns for a stock index during six consecutive years.…
A: Volatility means the risk associated with the stock. It is measured by calculating the standard…
Q: A stock has had returns of -5.32 percent, -7.58 percent, 4.68 percent, 7.7 percent, 8.98 percent,…
A: The below expression can be used to calculate geometric average return:
Q: Suppose that the rate of return for a particular stock during the past two years was 10% and 20%.…
A: Geometric Rate of return= [(1+r1)*(1+r2)......(1+r3)1/n-1 r1= .10 r2=.20 n=2 years
Q: Stock Z has the following returns for last five years. Calculate the arithmetic average return and…
A: Arithmetic Average Return refers to the concept which is appropriate for a shorter period of time.…
Q: Using the data in the following table, Year 2010 2011 2012…
A: Portfolio: A portfolio is a collection of financial assets such as stocks, bonds, commodities, cash…
Q: Over the past four years, large-company stocks and U.S. Treasury bills have produced the returns…
A: Here,
Q: A stock has yielded returns of 6 percent, 11 percent, 14 percent, and -2 percent over the past four…
A: The formula to calculate mean value is given below:
Q: Over the past 4 years, large-company stocks and U.S. Treasury bills have produced the returns stated…
A: real rate of return=1+nominal rate of return1+inflation-1.....(1)
Q: The table given below reports last five years data on rates of return on two stocks. Calculate and…
A: Arithmetic mean = sum of returns
Q: A stock’s returns for the past 3 years were 10%, 215%, and 35%.What is the historical average…
A: Working note:
Q: During the eight weeks between July 22 and September 16 2016, Facebook's weekly stock returns were…
A: The expected stock return is a difference between the initial stock price and the closing stock…
Q: Problem 6-13 Historical Realized Rates of Return Stocks A and B have the following historical…
A: Average return is calculate by AVERAGE function in Excel. Standard deviation is calculated by…
Q: A stock has had returns of −19 percent, 29 percent, 24 percent, −10.1 percent, 34.8 percent, and 27…
A: Year Return 1 -19.00% 2 29.00% 3 24.00% 4 -10.10% 5 34.80% 6 27.00%
Q: Pessimus stock's rate of return over the past 5 years was: 5%, -2%, 10%, 12%, -8%. What was its…
A: Return of year-1 = 5% Return of year-2 = -2% Return of year-3 = 10% Return of year-4 = 12% Return of…
Q: Consider the following realized annual returns: Index Stock A Realized Realized YearEnd Return…
A: Introduction: Standard deviation is a variation in the mean value of given data. Standard deviation…
Q: Over the past 5 years, a stock produced returns of 23 percent, -39 percent, 4 percent, and 16…
A: Calculation of average return and standard deviation: Excel workings:
Q: Stock A’s returns the past 5 years have been 10%, 215%, 35%, 10%,and 220%. Stock B’s returns have…
A: The coefficient of correlation is a measure that depicts the relationship between two variables.
Q: A stock had returns of 17.95 percent -7.35 percent, and 23.90 percent for the past three years. What…
A: Standard Deviation of Return is the variation of returns that we can expect from the mean returns of…
Q: A stock had returns of 12%, 6%, 13%, -11%, -2% over the past five years. what is the geometric…
A: Given returns of 12%, 6%, 13%, -11%, -2% over the past five years
Q: The return pattern on your favorite stock has been 5.39%, 8.26%, -12.04%, and 14.27% over the last…
A: In the given question we need to calculate average arithmetic and geometric rates of return from the…
Q: A stock has annual returns of 6 percent, 14 percent, -3 percent, and 2 percent for the past four…
A: Arithmetic Average = X1 + X2 + X3 +......+XNN
Q: You own a stock that had total returns of -1.3, 14.23, 5.52, 12.72, -7.71, 17.54, 5.06 (all in…
A: The formula to calculate arithmetic average return is given below:
Q: The table below shows the annual returns for a stock over the last four years. Year Return 2018 -12%…
A: Average return can be calculated using following formula = Sum of all returns / Number of years…
Q: The following table shows historical beginning-of-year prices for two stocks. A B C Year Stock A…
A: 1 Year Stock A Stock B 2 2014 33.47 575.35 3 2015 31.54 569.84 4 2016 30.91 594.22 5 2017…
Q: You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 16…
A: The provided returns are 6 percent, –5 percent, 19 percent, 13 percent, and 10 percent.
Q: The following information relates to the prices and dividends of two stocks listed on the Ghana…
A:
Q: Five years of realized returns for CCC are given in the following table. Remember: 1. While CCC was…
A: Calculate the average realized return, standard deviation, and coefficient of variation as follows:
Q: A stock has had the following prices at the end of each year for the last six year : $64.10, $74.05,…
A: The conceptual formula used:
Q: Stocks A and B have the following historical returns: Year rA rB 2015 -18% 56% 2016 44% 8% 2017 -22%…
A: As per Bartleby guidelines,If a question with multiple sub-parts are posted, first 3 sub-parts will…
Q: You inverted $10,000 in a large U.S. stocks at the beginning of 2016 and earned 6% in 2016, 2.0% in…
A: Average return is calculated by dividing the sum total of return earned during different periods by…
Q: A stock has had returns of 11 percent, -8 percent, 6 percent, 21 percent, 24 percent, and 16 percent…
A: The geometric return is calculated as compounded annualized return
Q: A stock has had returns of 14 percent, −18 percent, 2 percent, 33 percent, 27 percent, and 6 percent…
A: Geometric mean formula: GM =61+R1×1+R2×1+R3×1+R4×1+R5×1+R6where,Rx =returns at respective year x
Q: How is this set-up to solve? Ford Stock I) & II) were in previous question GM stock produced the…
A: Note: Data considered as sample. In case of sample size, for calculating standard deviation, one…
Q: 1. A stock has had the following year-end prices and dividends: Year Price ($) Dividend ($) 94.17…
A: The calculation of the return is as follows: The formulae used for the calculation of the return…
Q: How do i start this question? Ford stock produced the following monthly returns (January - May): 1%,…
A: Calculate the average return as follows: Average return = Sum of returns/Number of months Average…
Q: Using the data in the following table, estimate the average return and volatility for each stock.…
A: Return of stock A = Average return of stock "A" from 2008 to 2013
Q: A stock had returns of 15.75 percent, 23.01 percent, −9.82 percent, and 9.49 percent over four of…
A: Stock returns over four years is R1=15.75%R2=23.01%R3=-9.82%R4=9.49% Average return of 5 years is…
Q: Stock A's returns the past 5 years have been 10%, -15%, 35%, 10%, and -20%. Stock B's returns have…
A: The correlation coefficient of the stock is the statistical measure of the correlation between the…
Step by step
Solved in 2 steps
- Stocks A and B have the following historical returns:Year Stock A’s Returns, rA Stock B’s Returns, rB2003 (18%) (24%)2004 44 242005 (22) (4)2006 22 82007 34 56a. Calculate the average rate of return for each stock during the 5-year period.Assume that someone held a portfolio consisting of 50% of Stock A and 50%of Stock B. What would have been the realized rate of return on the portfolioin each year? What would have been the average return on the portfolio duringthis period?b. Now calculate the standard deviation of returns for each stock and for theportfolio. Use Equation 6-5.c. Looking at the annual returns data on the two stocks, would you guess thatthe correlation coefficient between returns on the two stocks is closer to 0.8 orto 0.8?d. If you added more stocks at random to the portfolio, which of the followingis the most accurate statement of what would happen to p?(1) p would remain constant.(2) p would decline to somewhere in the vicinity of 20%.(3) p would decline to…Stock A and Stock B have the following historical returns: Year Stock A’s Returns, Stock B’s Returns, 1 –10.00% –23.00% 2 18.50 21.29 3 38.67 44.25 4 14.33 3.67 5 33.00 28.30 Calculate the average rate of return for each stock during the period given in the table. Assume that someone held a portfolio consisting of 50 percent Stock A and 50 percent Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Calculate the standard deviation of returns for each stock and for the portfolio. Looking at the annual returns data on the two stocks, would you guess that the correlation coefficient between…Stock A and Stock B have the following historical returns: Year Stock A’s Returns, Stock B’s Returns, 1 –10.00% –23.00% 2 18.50 21.29 3 38.67 44.25 4 14.33 3.67 5 33.00 28.30 Calculate the average rate of return for each stock during the period given in the table. Assume that someone held a portfolio consisting of 50 percent Stock A and 50 percent Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Calculate the standard deviation of returns for each stock and for the portfolio
- Stocks A and B have the following historical returns: Year Stock A return Stock B return 2004 (24.25%) 5.5% 2005 18.5% 26.73% 2006 38.67% 48.25% 2007 14.33% (4.5%) 2008 39.13% 43.86% a) Calculate the average rate return for each stock during the period 2004 through 2008. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock What would the realized rate of return on the portfolio have been in each year from 2004 through 2008? What would the average return on the portfolio have been during that period? b) Calculate the standard deviation of returns for each stock and for the portfolio. c) Looking at the annual returns on the two stocks, would you guess that the correlation coefficient between the two stocks is closer to +0.8 or to -0.8? d) If more randomly selected stocks had been included in the portfolio, which of the following is the most accurate statement of what would have happened to p? I. p would have remained constant. II. p would have been in the…Stocks A and B have the following historical returns: year stock a stock b 2003 -18% -24% 2004 44% 24% 2005 -22% -4% 2006 22% 8% 2007 34% 58% A. Calculate the average rate of return for each stock during the 5-year period. Assumethat someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year?What would have been the average return on the portfolio for the 5-year period? B. Now calculate the standard deviation of returns for each stock and for the portfolio.Stocks A and B have the following historical returns: Year TA 2006 -18.00% -14.50% 2007 33.00 21.80 2008 15.00 30.50 2009 -0.50 -7.60 2010 27.00 26.30 a. Calculate the average rate of return for each stock during the 5-year period. b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? c. Calculate the standard deviation of returns for each stock and for the portfolio. d. Calculate the coefficient of variation for each stock and for the portfolio. e. If you are a risk-averse investor then, assuming these are your only choices, would you prefer to hold Stock A, Stock B, or the portfolio? Why?
- 3. Stocks A and B have the following historical returns: Year Stock A return Stock B return2004 (24.25%) 5.5%2005 18.5% 26.73%2006 38.67% 48.25%2007 14.33% (4.5%)2008 39.13% 43.86% a) Calculate the average rate of return for each stock during the period 2004 through 2008. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock What would the realized rate of return on the portfolio have been in each year from 2004 through 2008? What would the average return on the portfolio have been during that period? b) Calculate the standard deviation of returns for each stock and for the portfolio. c) Looking at the annual returns on the two stocks, would you guess that the correlation coefficient between the two stocks is closer to +0.8 or to –0.8? d) If more randomly selected stocks had been included in the portfolio, which of the following is the most accurate statement of what would have happened to p? I. p would have remained constant. II. p would have been in the…Stocks A and B have the following historical returns: Year Stock A return Stock B return 2004 (24.25%) 5.5% 2005 18.5% 26.73% 2006 38.67% 48.25% 2007 14.33% (4.5%) 2008 39.13% 43.86% Calculate the average rate of return for each stock during the period 2004 through 2008. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock What would the realized rate of return on the portfolio have been in each year from 2004 through 2008? What would the average return on the portfolio have been during that period?Stocks A and B have the following historical returns: Year Stock A return Stock B return 2004 (24.25%) 5.5% 2005 18.5% 26.73% 2006 38.67% 48.25% 2007 14.33% (4.5%) 2008 39.13% 43.86% Calculate the average rate of return for each stock during the period 2004 through 2008. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock What would the realized rate of return on the portfolio have been in each year from 2004 through 2008? What would the average return on the portfolio have been during that period? Calculate the standard deviation of returns for each stock and for the portfolio. Looking at the annual returns on the two stocks, would you guess that the correlation coefficient between the two stocks is closer to +0.8 or to –0.8? If more randomly selected stocks had been included in the portfolio, which of the following is the most accurate statement of what would have happened to p? p would have…
- Stocks A and B have the following historical returns: Year Stock A return Stock B return 2004 (24.25%) 5.5% 2005 18.5% 26.73% 2006 38.67% 48.25% 2007 14.33% (4.5%) 2008 39.13% 43.86% Calculate the average rate of return for each stock during the period 2004 through 2008. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock What would the realized rate of return on the portfolio have been in each year from 2004 through 2008? What would the average return on the portfolio have been during that period? Calculate the standard deviation of returns for each stock and for the portfolio.A stock has the following prices at the end of each of the following 5 years. What is the geometric average return over the period? Year 20x1 20x2 20x3 20x4 20x5 b. 1.17% 4 c. 2.26% d. 1.94% Price $2.17 $2.19 $2.12 $2.51 $2.3 Finish reviewAnnual returns of Stock in the past 5 years are presented in the following table: Stock B O 5.18% 8.56% Compute the standard deviation of the annual return of Stock B. O 2.4% Year 1 -0.02 4.24% Year 2 0.08 Year 3 0.04 Year 4 0.06 Year 5 -0.04