You find a particular stock has an annual standard deviation of 42 percent. What is the standard deviation for a four- month period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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- You find a certain stock that had returns of 15 percent, -17 percent, 23 percent, and 11 percent for four of the last five years. Assume the average return of the stock over this period was 10 percent. a. What was the stock's return for the missing year? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the standard deviation of the stock's returns? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. Answer is complete but not entirely correct. Missing return Standard deviation 32.50 % 52.50 %You find a certain stock that had returns of 13 percent, -21.5 percent, 27.5 percent, and 18.5 percent for four of the last five years. Assume the average return of the stock over this period was 11 percent. a. What was the stock's return for the missing year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the standard deviation of the stock's returns? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Missing return b. Standard deviation % %You find a certain stock that had returns of 16 percent, −23 percent, 24 percent, and 9 percent for four of the last five years. The average return of the stock over this period was 10.2 percent. a. What was the stock’s return for the missing year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b. What is the standard deviation of the stock’s returns? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- You find a certain stock that had returns of 14 percent, -21 percent, 22 percent, and 11 percent for four of the last five years. The average return of the stock over this period was 9.4 percent. a.What was the stock's return for the missing year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b.What is the standard deviation of the stock's returns? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Missing return a. % b. Standard deviation %A stock has an abnormal return of -0,8% per month. What is the annualized abnormal return? The answer should be given in decimal form with three decimals (e.g., if the correct answer is 2.4% write 0.024)Suppose that S = $100, K = $100, r = 0.08, σ = 0.30, δ = 0, and T = 1. Construct a standard two-period binomial stock price tree using the method in Chapter 10. consider stock price averages computed by averaging the 6-month and 1-year prices. What are the possible arithmetic and geometric averages after 1 year? Construct a binomial tree for the average. How many nodes does it have after 1 year? (Hint: While the moves ud and du give the same year-1 price, they do not give the same average in year 1.) What is the price of an Asian arithmetic average price call? What is the price of an Asian geometric average price call?
- The last four years of returns for a stock are as shown here: a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 4 Return +3.51% 1 - 4.17% 2 +27.82% 3 + 11.88% XThe following are the monthly rates of return for Madison Cookies and for Sophie Electric during a six-month period. Month Madison Cookies Sophie Electric 1 −0.04 0.072 0.06 −0.023 −0.07 −0.104 0.12 0.155 −0.02 −0.066 0.05 0.02 Compute the following. a. Average monthly rate of return Ri for each stockb. Standard deviation of returns for each stockc. Covariance between the rates of returnd. The correlation coefficient between the rates of returnWhat level of correlation did you expect? How did your expectations compare with the computed…Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t = 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
- The last four years of returns for a stock are shown here: a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. a. What is the average annual return? The average return is ☐ %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Return 1 -4.12% 2 +27.56% 3 + 12.24% +4.35% Print Done - XThe past five monthly returns for PG&E are −3.23 percent, 4.03 percent, 3.83 percent, 6.56 percent, and 3.64 percent. Compute the standard deviation of PG&E’s monthly returns. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Standard Deviation %Suppose a stock has generated the following annual returns: 13.9%, 12.9% and 7.9%. What was the standard deviation of its returns? Answer in percent, rounded to two decimal places (e. g., 4.32% = 4.32).