The average rate of return of country U large common stocks from 1900 to 2015.

Question

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Answer 1

Question

Chapter 11, Problem 1QP

a)

Summary Introduction

To discuss: The average rate of return of country U large common stocks from 1900 to 2015.

a)

Expert Solution

Explanation of Solution

The average rate of return of country U large common stocks are 11.4% for the period of 1900 to 2015.

b)

Summary Introduction

To discuss: The average risk premium on big stocks.

b)

Expert Solution

Explanation of Solution

The average risk premium on big stock is 7.6% for the period of 1900 to 2015.

c)

Summary Introduction

To discuss: The market portfolio’s standard deviation of returns.

c)

Expert Solution

Explanation of Solution

The market portfolio’s standard deviation of returns is 19.9% for the period of 1900 to 2015.

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Students have asked these similar questions

The metric that is used to show the extent to which a given stock’s return move up and down with the stock market? a. Correlation b. Beta c. Standard deviation d. Expected return

Name the econometric term used for estimating the correlation between today’s stock price and the price of previous days (lag prices).

Given the following information on five stocks, construct: a. A simple price-weighted average b. A value-weighted average c. A geometric average d. What is the percentage increase in each average if the stock prices change to those in Column I? e. What is the percentage increase in each average if the stock prices change from those in the Price column to those in Column II? f. Why were the percentage changes different in parts (d) and (e)? g. If you were managing a fund and wanted a source to compare your results to, which of the three averages would you prefer to use, and why? Stock Price # of Shares I II A B C D E F $12.00 150,000 $14.00 125,000 $11.00 200,000 $ 22.00 80,000 $8.00 30,000 $29.00 140,000 $12.00 $12.00 $14.00 $14.00 $20.00 $11.00 $ 22,00 $ 22.00 $8.00 $15.00 $29.00 $29.00

Answer 2

Question

Chapter 11, Problem 1QP

a)

Summary Introduction

To discuss: The average rate of return of country U large common stocks from 1900 to 2015.

a)

Expert Solution

Explanation of Solution

The average rate of return of country U large common stocks are 11.4% for the period of 1900 to 2015.

b)

Summary Introduction

To discuss: The average risk premium on big stocks.

b)

Expert Solution

Explanation of Solution

The average risk premium on big stock is 7.6% for the period of 1900 to 2015.

c)

Summary Introduction

To discuss: The market portfolio’s standard deviation of returns.

c)

Expert Solution

Explanation of Solution

The market portfolio’s standard deviation of returns is 19.9% for the period of 1900 to 2015.

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Answer 3

Question

Chapter 11, Problem 1QP

a)

Summary Introduction

To discuss: The average rate of return of country U large common stocks from 1900 to 2015.

a)

Expert Solution

Explanation of Solution

The average rate of return of country U large common stocks are 11.4% for the period of 1900 to 2015.

b)

Summary Introduction

To discuss: The average risk premium on big stocks.

b)

Expert Solution

Explanation of Solution

The average risk premium on big stock is 7.6% for the period of 1900 to 2015.

c)

Summary Introduction

To discuss: The market portfolio’s standard deviation of returns.

c)

Expert Solution

Explanation of Solution

The market portfolio’s standard deviation of returns is 19.9% for the period of 1900 to 2015.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 1QP

a)

Summary Introduction

To discuss: The average rate of return of country U large common stocks from 1900 to 2015.

a)

Expert Solution

Explanation of Solution

The average rate of return of country U large common stocks are 11.4% for the period of 1900 to 2015.

b)

Summary Introduction

To discuss: The average risk premium on big stocks.

b)

Expert Solution

Explanation of Solution

The average risk premium on big stock is 7.6% for the period of 1900 to 2015.

c)

Summary Introduction

To discuss: The market portfolio’s standard deviation of returns.

c)

Expert Solution

Explanation of Solution

The market portfolio’s standard deviation of returns is 19.9% for the period of 1900 to 2015.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1QP

a)

Summary Introduction

To discuss: The average rate of return of country U large common stocks from 1900 to 2015.

a)

Expert Solution

Explanation of Solution

The average rate of return of country U large common stocks are 11.4% for the period of 1900 to 2015.

b)

Summary Introduction

To discuss: The average risk premium on big stocks.

b)

Expert Solution

Explanation of Solution

The average risk premium on big stock is 7.6% for the period of 1900 to 2015.

c)

Summary Introduction

To discuss: The market portfolio’s standard deviation of returns.

c)

Expert Solution

Explanation of Solution

The market portfolio’s standard deviation of returns is 19.9% for the period of 1900 to 2015.

Answer 6

Chapter 11, Problem 1QP

a)

Summary Introduction

To discuss: The average rate of return of country U large common stocks from 1900 to 2015.

a)

Expert Solution

Explanation of Solution

The average rate of return of country U large common stocks are 11.4% for the period of 1900 to 2015.

Answer 7

Chapter 11, Problem 1QP

a)

Summary Introduction

To discuss: The average rate of return of country U large common stocks from 1900 to 2015.

Answer 8

a)

Expert Solution

Explanation of Solution

The average rate of return of country U large common stocks are 11.4% for the period of 1900 to 2015.

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

b)

Summary Introduction

To discuss: The average risk premium on big stocks.

b)

Expert Solution

Explanation of Solution

The average risk premium on big stock is 7.6% for the period of 1900 to 2015.

Answer 13

b)

Summary Introduction

To discuss: The average risk premium on big stocks.

Answer 14

b)

Expert Solution

Explanation of Solution

The average risk premium on big stock is 7.6% for the period of 1900 to 2015.

Answer 15

b)

Expert Solution

Answer 16

b)

Expert Solution

Answer 17

Expert Solution

Answer 18

c)

Summary Introduction

To discuss: The market portfolio’s standard deviation of returns.

c)

Expert Solution

Explanation of Solution

The market portfolio’s standard deviation of returns is 19.9% for the period of 1900 to 2015.

Answer 19

c)

Summary Introduction

To discuss: The market portfolio’s standard deviation of returns.

Answer 20

c)

Expert Solution

Explanation of Solution

The market portfolio’s standard deviation of returns is 19.9% for the period of 1900 to 2015.

Answer 21

c)

Expert Solution

Answer 22

c)

Expert Solution

Answer 23

Expert Solution

Answer 24

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The average rate of return of country U large common stocks from 1900 to 2015.

To discuss: The average rate of return of country U large common stocks from 1900 to 2015.

Explanation of Solution

To discuss: The average risk premium on big stocks.

Explanation of Solution

To discuss: The market portfolio’s standard deviation of returns.

Explanation of Solution

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