A stock had retums of 11 percent, 26 percent, 8 percent, and -38 percent annunlly for the past 4 years. What ta the mean and varlance of these returns?Multiple ChoiceO 175%, 057319O 175% 076425O 3.50%, 0628333.50% 0764253.50N O57310

Mean is the average of returns given over a period. Standard deviation is the variability of…

Answered: A stock had retums of 11 percent, 26…

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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A stock had retums of 1 percent, 26 percent, 8 percent, and -38 percent annually for the past 4 years. What ts the mean and varlance of these returns? Multiple Choice O 175K, 057319 O 175K 076425 O 150N O62833 O 250 076425 O 150N 057310
A stock has had returns of 12 percent, 30 percent, 17 percent, -18 percent, 30 percent, and -7 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 declmal places, e.g., 32.16.) Arithmetic average return Geometric average return < Prev 14 of 30 Next EA9F9D41-D35...jpeg 8A1B4474-4751.jpeg 8A1B4474-4751..jpeg
Your stock's returns for the past four years are as follows. t Return t1 19.79% t2 -0.58% t3 8.55% t4 4.68% Compute the geometric average return for this stock. Please enter your answer as a PERCENT rounded to 2 decimal places.
A stock has had the following year-end prices and dividends: Year Price 0 012345 1 $ 15.00 17.18 18.18 16.68 19.02 22.13 Dividend $ 0.15 0.38 0.40 0.42 0.48 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Arithmetic return Geometric return % %
H5. A stock has had the following year-end prices and dividends: Year Price Dividend 1 $40 — 2 $55 $1.10 3 $60 $1.20 4 $70 $1.30 The geometric average return for the stock is ______%. Group of answer choices 23. 45 20 28. 35 22. 86 33 .41 Show proper step by step calculation and explain with details
A stock had returns of 14 percent, 13 percent, −10 percent, and 7 percent for the past four years. What is the 99 percent probability range of returns for this stock? A. −16.2 percent to 17.1 percent B. −5.1 percent to 17.1 percent C. −16.2 percent to 28.2 percent D. −27.3 percent to 39.3 percent
Based on the following, how much is the value of the stock at the end of year 5? D1 = 3.00; D2 = 3.09; MV0 = P30. a. P33.12 b .P33.78c. P34.78 d. P35.82
Given the time series of historical stock returns below, what is the standard deviation? (Hint: theexpected return is 4%)Time Period 1 2 3 4 5return (%) 5% -7% 12% 13% -3% a. 7.585%b. 0.79%c. 8.888%d. 2.155%
Stocks A and B have the following historical returns:Year Stock A’s Returns, rA Stock B’s Returns, rB2003 (18%) (24%)2004 44 242005 (22) (4)2006 22 82007 34 56a. Calculate the average rate of return for each stock during the 5-year period.Assume that someone held a portfolio consisting of 50% of Stock A and 50%of Stock B. What would have been the realized rate of return on the portfolioin each year? What would have been the average return on the portfolio duringthis period?b. Now calculate the standard deviation of returns for each stock and for theportfolio. Use Equation 6-5.c. Looking at the annual returns data on the two stocks, would you guess thatthe correlation coefficient between returns on the two stocks is closer to 0.8 orto 0.8?d. If you added more stocks at random to the portfolio, which of the followingis the most accurate statement of what would happen to p?(1) p would remain constant.(2) p would decline to somewhere in the vicinity of 20%.(3) p would decline to…
A stock had returns of 2 percent, 1.4 percent, -4.2 percent, 5.8 percent, -9.9 percent, and 17.8 percent over the past six years. What is the arithmetic average return for this time period? _____%
Directions: Compute the total returns, the average of returns, and the standard deviation of the following stocks: 1) 2) EGRH Inc. MP, Ltd. STOCK RETURN AVERAGE OF YEA AVERAGE OF RETURNS (x) YEAR STOCK RETURN PRICE (x₁) PRICE RETU Jan-2021 Po Feb-2021 P8.6 Jan-2021 PO. Feb-2021 PO.090 Mar-2021 P0.097 Apr-2021 PO.189 May-2021 PO.164 Mar-2021 P9.14 Apr-2021 P13.30 May-2021 P13 Jun-2021 P60 Jul-2021 16.94 Jun-2021 P0.495 Jul-2021 PO.28 Aug-2021 PO Sep-2021 90 Aug-202 P13.70 Sep-2 P14.88 Oct-2021 0.375 Oct 21 P15.30 Nov-20 PO.325 N2021 P14.30 Dec-2 PO.330 ec-2021 P15.52 3) SD (8) GSM Inc. STOCK YEAR PRICE Jan-2021 P57.70 Feb-2021 P52.90 Mar-2021 P50.95 Apr-2021 P58.25 May-2021 P74.05 Jun-2021 P94.75 Jul-2021 P85.00 Aug-2021 P105.00 Sep-2021 P114.00 Oct-2021 | P101.00 Nov-2021 P100.40 Dec-2021 P113.80 SD (8) = RETURN (x₁) -x)² AVERAGE OF RETURNS (x-x)² (x) SD (8) = ACEE, Inc. YEAR STOCK RETURN PRICE (x₁) Jan-2021 P13.56 Feb-2021 P20.80 Mar-2021 P22.50 Apr-2021 P18.90 May-2021 P17.00…
What are the arithmetic and geometric average returns for a stock with annual returns of 15 percent, 9 percent, –-7 percent, and 14 percent? Multiple Choice 11.20%; 7.75% 7.75%; 7.37% 7.75%; 11.20% 7.37%; 7.75% 11.20%; 7.37% previous 16 of 40 Next >

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A stock had retums of 11 percent, 26 percent, 8 percent, and -38 percent annunlly for the past 4 years. What ta the mean and varlance of these returns? Multiple Choice O 175%, 057319 O 175% 076425 O 3.50%, 062833 3.50% 076425 3.50N O57310