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)Percentages need to be entered in decimal format, for instance 3% would be entered as .03.) Stock A and Stock B produced the returns shown on the spreadsheet during the past five years (Year -1 is one year ago, Year -2 is two years ago, and so forth). According to the spreadsheet, what is the average rate of return for each stock during the past five years? (Refer to Row 26 for average rate of return.) Based on the information in the spreadsheet, what is the coefficient of variation for each stock and for the portfolio? (Refer to Row 28 for the coefficient of variation.) If you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? Why? Consider a third stock, Stock C, that is available for inclusion in the portfolio. Stock C produced the returns shown in the table during the past five years (add this to column D under Stock C). What is the average return, standard deviation, and coefficient of variation for Stock C? (Refer to Row 27 for…
- Over the past five years, a stock returned -2.73 percent, 14.66 percent, 15.19 percent, 3.43 percent, and 5.49 percent, respectively. What is the variance (as a decimal fraction) of these returns? Carry intermediate calculations to six decimals. Answer to four decimals. Your answer should look something like 0.0123, or 0.0024.Stock prices over 5 months are observed to be $110.00, $115.00, $98.00, $107.00, and $112.00. What is the annualized standard deviation of the continuously compounded returns? Only using a calculator.The past five monthly returns for PG&E are −3.55 percent, 4.83 percent, 4.15 percent, 7.04 percent, and 3.96 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: _____.__%
- Use the times and corresponding closing prices of the stock to create coordinate pairs. Let x represent the number of weeks since the first data point, and let y represent the closing price at each time. So, x=0 represents the data point from 5 years ago. There are 52 weeks in a year, and you can write the time for each closing price recorded in terms of weeks that have passed since 5 years ago, when x=0. Fill in the table to represent your data as coordinate pairs. x (weeks since 5 yrs ago) most recent 260 7days ago 259 1 month ago 256 6 months ago 234 1 year ago 208 3 years ago 104 5 years ago 0 y (closing price, in $) most recent 7 days ago 1 month ago 6 months ago 1 year ago 3 years ago 5 years agoYou've observed the following returns on Pine Computer's stock over the past five years: 8 percent, -12 percent, 14 percent, 21 percent, and 16 percent. The average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 4.1 percent. a. What was the average real return on the stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the average nominal risk premium on the stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Average real return b. Average nominal risk premium % %The 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 0.07 2 0.06 -0.02 3 -0.07 -0.10 4 0.12 0.15 5 -0.02 -0.06 6 0.05 0.02 Compute the following: a. Average monthly rate of return, Ri, for each stock b. Standard deviation of returns for each stock c. Covariance between the rates of return d. The correlation coefficient between the rates of return What level of correlation would you have expected before performing your calculations? How did your expectations compare with the computed correlation? Would these two stocks be good choices for diversification? Why or why not?