Stocks A and B have the following historical returns:2017201820192020YearStock A's Returns, "AStock B's Returns, r2016(23.80%)22.50(17.70%)24.50ITT14.25(2.25)25.0024.00(9.70)14.60%a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places.Stock A:Stock B:%b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should beIndicated by a minus sign.YearPortfolio2016%2017%2018%2019%2020%What would the average return on the portfolio have been during this period? Round your answer to two decimal places.%c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places.Standard DeviationStock A%Stock B%Portfolio%d. Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places.CVStock AStock BPortfolioe. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio?-Select-✓

Portfolio rate of returnRate of return of a portfolio is the weighted average rate of return of all…

Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, re 2016 (23.80%) 2017 22.50 (17.70%) 24.50 2018 14.25 24.00 2019 2020 (2.25) 25.00 (9.70) 14.60 % a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: Stock B: % b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be Indicated by a minus sign. Year Portfollo 2016 % 2017 % 2018 % 2019 % 2020 % What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Standard Deviation Stock A % Stock B % Portfolio %

Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, re 2016 (23.80%) 2017 22.50 (17.70%) 24.50 2018 14.25 24.00 2019 2020 (2.25) 25.00 (9.70) 14.60 % a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: Stock B: % b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be Indicated by a minus sign. Year Portfollo 2016 % 2017 % 2018 % 2019 % 2020 % What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Standard Deviation Stock A % Stock B % Portfolio %

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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Based on five years of monthly data, you derive the following information forthe companies listed: Company SDi rm Padma 11.10% 0.82 Meghna 12.60% 0.63 Jamuna 6.60% 0.45 Karnafully 9.70% 0.70 SD on Market 7.60% 1.00 Compute the beta coefficient for each stock.
Refer to Figure 15.1, which lists the prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profit/loss for investments in each of the following November 2019 expiration options on a single share, assuming that the stock price on the expiration date is $143. (Loss amounts should be indicated by a minus sign. Round "Profit/Loss" to 2 decimal places.)
Using the data from the following table,calculate the return for investing in this stock from January 1 to December 31. Prices are after the dividend has been paid. Stock Price Dividend Jan 1 $50.18 Mar 31 $51.11 $0.58 Jun 30 $49.56 $0.58 Sep 30 $51.93 $0.75 Dec 31 $52.53 $0.75 The return from January 1 to March 31 is enter your response here. (Round to five decimal places.) Part 2 The return from March 31 to June 30 is enter your response here. (Round to five decimal places.) Part 3 The return from June 30 to September 30 is enter your response here. (Round to five decimal places.) Part 4 The return from September 30 to December 31 is enter your response here. (Round to five decimal places.) Part 5 enter your response here%. (Round to two decimal places.)
You purchase 115 shares of stock for $53 a share. The stock pays a $7 per share dividend at year- end. What is the rate of return on your investment for these end-of-year stock prices? What is your real (inflation-adjusted) rate of return? Assume an inflation rate of 5%. (Round your answers to 2 decimal places. Use the minus sign for negative numbers If it is necessary.) a. End-of-year stock price = $48 Rate of return Real rate b. End-of-year stock price = $53 Rate of return Real rate c. End-of-year stock price = $60 Rate of return Real rate
What is the volatility of a certain stock index from 2019 to 2022? The return for each year is given by: 4,30%, 10,75%, 2,05%, and 12,70%. Calculate the average return over the four-year period. Then, determine the volatility (standard deviation) of the stock index returns.
Return for the entire period is (Round to two decimal places.)
o The following information is available concerning the price evolution of Microsoft stocks between 2016-2019 and the dividends paid by them. Date March 1, 2016 April 1, 2016 July 1, 2016 March 1, 2017 March 1, 2019 Close price 55.23 49.87 56.68 65.86 117.94 Total Dividends - 0.36 1.50 4.88 o Requirements: Considering that you bought Microsoft shares on March 1, 2016, compute the holding-period return for each maturity • Annualize the holding-period returns using EAR and APR • Comment on the results
None
As an analyst at an investment bank, you are asked to compare the monthly returns of the two stocks Tesla and Apple Inc during the period of August 2020 to March 2021: Tesla, Xi Aug Sep Oct Nov Dec Jan Feb Mar 0.038 0.199 0.187 -0.069 0.481 0.392 -0.039 -0.150 Apple Inc, y: 0.184 -0.010 0.111 -0.042 0.027 0.052 0.051 -0.106 Σx₁ = 1.039 Σ(x-x)² = 0.3549 Σχ Σy = 0.267 Σ(y: - y)2 = 0.0564
You purchased a stock for $50.00 share at the end of 2014. At the end of the years 2015 – 2018 the stock was worth $54.75, $59.13, $56.41, and $60.06 respectfully. You sold the stock at the end of 2019 for $62.00 per share. Calculate your geometric mean annual return for the stock during the period in which you owned it. Report your answer to 2 decimal places You purchased a stock for $50.00 share at the end of 2014. At the end of the years 2015 – 2018 the stock was worth $54.75, $59.13, $56.41, and $60.06 respectfully. You sold the stock at the end of 2019 for $62.00 per share. Calculate your arithmetic mean annual return for the stock during the period in which you owned it. Report your answer to 2 decimal places
A stock had returns of 8%, 14%, and 2% for the past three years. Based on these returns, what is the probability that this stock will earn at least 20% in any one given year? A) 0.5% B) 1.0% C) 2.3% D) 5.0% E) 16.0% Answer: C) 2.3% Please show the steps.
How do i start this question? Ford stock produced the following monthly returns (January - May): 1%, 10%, 6%, 3%, and 2%. I) Calculate the average return for each stock. II) Calculate the standard deviation of monthly return for each stock.

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