The following information relates to the prices and dividends of two stocks listed on the Ghana Stock Exchange as well as the average market returns. Stock A Price Year 2011 2012 2013 2014 2015 2016 20 24 26 31 33 40 Dix 0 1.2 0.5 1 1.5 2 Stock B Price 11 13 17 20 23 27 Dix 0 1.6 0.5 0.9 1.2 1.5 Market Returns 0 0.25 0.18 0.11 0.12 0.15 Required. a. Calculate the annual returns for each stock (2012-2016) b. Calculate the average returns for each of the stocks and the market c. Calculate the covariance between the stocks d. Assuming the two stocks are equally weighted, calculate the portfolio return and portfolio risk

The following information relates to the prices and dividends of two stocks listed on the Ghana Stock Exchange as well as the average market returns. Stock A Price Year 2011 2012 2013 2014 2015 2016 20 24 26 31 33 40 Dix 0 1.2 0.5 1 1.5 2 Stock B Price 11 13 17 20 23 27 Dix 0 1.6 0.5 0.9 1.2 1.5 Market Returns 0 0.25 0.18 0.11 0.12 0.15 Required. a. Calculate the annual returns for each stock (2012-2016) b. Calculate the average returns for each of the stocks and the market c. Calculate the covariance between the stocks d. Assuming the two stocks are equally weighted, calculate the portfolio return and portfolio risk

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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Compute for the Standard Deviation:
Refer to the stock market quote in Table 8–1. (LG 8-5)a. What was the closing stock price for Celldex Therapeutics on February 21, 2020? b. What was the percentage change in Dropbox's stock price from February 20, 2020, and February 21, 2020? c. How many shares of California Resources Corp. stock were traded on February 21, 2020?
Consider the following stock price and shares outstanding information. PWIyear 1: PWIYear 2: a. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round answers to two decimal places. VWIyear 1: VWIYear 2: DECEMBER 31, Year 2 Shares DECEMBER 31, Year 1 Shares Outstanding Price Outstanding 107,000,000 $29 107,000,000 2,500,000 48 29,000,000 43 5,000,000² 29,000,000 % % Price $22 70 39 b. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places. Percentage change in PWI: % Stock K Stock M Stock R aStock split two-for-one during the year. Percentage change in VWI: c. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places.
Suppose you have the following information from Muscat stock market Second day closing price Stock Share Base day outstanding Closing price Salalah company Dhofar power company | 26 Oman company 18 3 2.8 2.8 3.1 10 4.1 2.1 Dhofar bank 28 3 1.8 Calculate 1. Price weighted index 2. Value weighted index
The following limited information is available for returns on two shares listed on the Lusaka Securities Exchange (LuSE) in Zambia. Year Gipley Petros 2001 0.20 0.16 2002 0.28 0.12 2003 0.36 0.10 2004 0.12 0.18 Despite the limited number of readings, a normal distribution of returns may be assumed, In addition, past performance is considered to reflect expected future performance. Required, a) Calculate for each of the shares; i. The average return ii. Standard deviation iii. Coefficient of variation b) Taking the role of an investment advisor, recommend one of the two shares to a client who wishes to make a choice between an investment in Gipley Ltd or an investment in Petros Ltd. Advise the client of some of the issues which should be considered.
5
Given the following price and dividend information, calculate the holding period return. (Enter percentages as decimals and round to 4 decimals) Stock: MSFT Year Price Dividend 2017 $ 64.65 2018 $ 95.01 $ 1.72 2019 $ 104.43 $ 1.89 2020 $ 107.23 $ 2.09 2021 $231.96 $ 2.30 2022 $310.98 $ 2.54 2023 $247.81 $ 3.00
Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 30% 20% Normal 50% 12% -5% Slow 15% 4% 8% Recession 15% -10% 10% Calculate the correlation (A,B). (Enter percentages as decimals and round to 4 decimals)
Compare the year end price of Dollar Inc. and Target Corp. As an investor, what would these two charts tell you, and who would you choose to invest in and why?
The price of the share / stock that a company observe from a financial market such as Muscat Stock Exchange is known as ..................... Select one: A. Fundamental Price B. Extrinsic Price C. Intrinsic Price D. Market Price
The Bloomberg screen below shows the Nasdaq Index price over the last year. Describe the technical indicator used from the chartist and what trade signal it may suggest. CCMP €T On 03 CCMP Index 11/04/2020 Study RSI 1D 3D 1M 6M YTD 1Y 5Y Max Daily Volume 1.000B IRSI (14) on Close (CCMP) 75.3572 Nov C 15811.58 +161.98 Nov 0 15658.52 H 15821.58 L 15616.44 Prev 15811.58 94) Suggested Charts 96) Actions 97) Edit 11/04/2021 Last Px Local CCY Mov Avgs Period 14 Overbought 70 Oversold 30 1 Table + Compare ▾ Add Data Track Annotate News Zoom Key Events 2020 Dec Jan Feb Mar Apr May Jun 06/03/21 Jul Aug Relative Strength Index ไปได้ Sep Edit Chart * Oct 15811.5801 15013.0596 14198.1699 Last Price THigh on 11/03/21 Average 15811.5801 15821.5801 12000 13839.5049 Z-VOU 1 Low on 11/04/20 11394.21 11075.4473 ISMAVG (50) on Close 15013.0596 SMAVG (100) on Close 14805.082 SMAVG (200) on Close 14198.1699 13000 10000 3B 2B 1.000B -0 100 75.3572 -50 -0
Suppose a market consists of four stocks. The number of shares outstanding for each stock as well as the stock prices in two consecutive days are as follows: Stock A Stock B Stock C Stock D Shares outstanding 200 1000 400 3000 I $5 $30 $100 $40 Ро $15 $25 $80 $50 a) Compute the percentage increase in the price-weighted index for this market. b) Compute the percentage increase in the value-weighted index for this market. P₁

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