8.On March 24, 2020, the Dow Jones Industrial Average opened at $18,591.93 and closed at $20,704.91. What was the daily return that day, and what was the effective annual rate return (in percent) of the stock market that day? Daily Return: __________% EAR:_________ %
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Please answer Question 8 & 9
8.On March 24, 2020, the Dow Jones Industrial Average opened at $18,591.93 and closed at $20,704.91. What was the daily return that day, and what was the effective annual rate return (in percent) of the stock market that day?
Daily Return: __________% EAR:_________ %
9. Financial analysts
Stock Value: $___________________
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- Current price of Company X's stock is $100. The table below gives the data on end of the year prices and probabilities dependent on the state of the economy. Calculate the expected return for the stock. (E) Economy Probability End of the year price Growth .5 $130 Recession .5 $90 O a. 25% b. 10% O c. 15% O d. 20%The Dow Jones Industrial Average had the following annual returns: Year Return 2019 22.3% 2020 7.3% 2021 19% 2022 -8.7% Using just these last 4 years of data, what is the expected return for the Dow Jones? What is the standard deviation of the returns? Please show and explain your work.At the beginning of the slide, you were asked to derive the annualize rate of return for the U.S. stock market. In 2016 the value was 23.6 trillion and in 2018 it was 30.1 trillion. So what is the annualized RR? Select one: O a. 6.50% b. 27.54% O c. 30.10% O d. 13.77%
- Assume these are the stock market and Treasury bill returns for a 5-year period: T-Bill Return Year Stock Market Return (8) (8) 2016 32.50 0.07 2017 11.80 0.07 2018 -2.40 0.07 2019 13.70 0.25 2020 22.40 0.27 Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Complete this question by entering your answers in the tabs below. Required A Required B Required C What was the risk premium on common stock in each year? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative values should be entered with a negative sign.. Year Risk Premium 2016 % 2017 % 2018 % 2019 % 2020 %) The table below shows the annual returns for a stock over the last four years. Year Return 2018 -12% 2019 15% 2020 27% 2021 -34% a. What is the stock's average return over the 2018-2021 period? b. What is the standard deviation of returns over this same period? MacBook ProAssume these are the stock market and Treasury bill returns for a 5-year period: Year 2016 2017 2018 2019 2020 Stock Market Return (%) 33.30 13.20 -3.50 14.50 23.80 Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) 3 Required A Required B T-Bill Return Complete this question by entering your answers in the tabs below. Standard deviation (%) 0.12 0.12 0.12 0.07 0.09 x Answer is complete but not entirely correct. Required C What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. 13.69 X % घ
- Show the monthly return of the company and S&P 500 in the same graph. What is your interruption interpretation of the change of return of the company comparing with the market index? Calculate the monthly standard deviation and return for both the company and S&P 500. What is your interruption of the risk and return of the company comparing with the market index? S&P 500 last 6 months : Date Open High Low Close* Adj. close** Volume 01 Apr 2022 4,540.32 4,593.45 4,381.34 4,392.59 4,392.59 37,024,560,000 01 Mar 2022 4,363.14 4,637.30 4,157.87 4,530.41 4,530.41 100,978,320,000 01 Feb 2022 4,519.57 4,595.31 4,114.65 4,373.94 4,373.94 73,167,790,000 01 Jan 2022 4,778.14 4,818.62 4,222.62 4,515.55 4,515.55 73,279,440,000 01 Dec 2021 4,602.82 4,808.93 4,495.12 4,766.18 4,766.18 68,699,830,000…Review the following market information: Current Stock Market Return 11.25% Current T-Bill Price $979.43 Historic T-Bill Average Return 2.80% Historic Stock Market Average Return 8.10% Stock Beta 1.23 What is the required return (rounded to two places)?A stock price is $20. It has an expected return of 12% and a volatility of 35%. What is the standard deviation of the change in the price in one day. (For this question assume that there are 365 trading days in the year.) Question 15Answer a. $0.23 b. $0.10 c. $0.26 d. $0.37
- Stock A trades at $10 today, $8 a year ago and $6 a year before that….What will it trade at next year? } Stock B trades today at $33.90, last year at $27, year before at $21…..What will it trade at next year? } Stock C trades today at $114.27. last year at $91.40, year before $86.10….What will it trade at next year?> Access image details O O RETURN ON STOCK O O D O O O Oo O RETURN ON MARKET This graph plots the monthly returns for a given company against the monthly returns for the market. Every dot corresponds to a month and the associated returns for the market and the company during that month. Looking at this graph, where do you think you can find the Beta? Remember that a Beta roughly measures the correlation between a given company's returns and the market's returns.suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom 0.2 42% Normal growth 0.6 23 Recession 0.2-17 E(r) = Σss = 1p(s)r( s) Var(r)=\sigma 2 = Σss = 1p(s)[r(s)-E(r)]2 SD (r)=\sigma = Var(r) ✓ Required: Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)