In terms of the stock valuation as indicated by the Cyclically Adjusted Price-Earnings Ratio (CAPE), which of the following years does NOT represent a peak in the U.S. stock market? Group of answer choices a1929. b1901. c 2000. d 1981.
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In terms of the stock valuation as indicated by the Cyclically Adjusted Price-Earnings Ratio (CAPE), which of the following years does NOT represent a peak in the U.S. stock market? Group of answer choices
a1929.
b1901.
c 2000.
d 1981.
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- What is the standard deviation of the returns on a stock given the following information? State of Economy Probability of State of Economy Rate of Return if State Occurs Boom .08 .171 Normal .70 .076 Recession .22 .017What is the standard deviation of Stock B returns given the information below about its returns across future states of nature? Enter return in decimal form, rounded to 4th digit, as in "0.1234"What is the standard deviation of Stock A returns given the information below about its returns across future states of nature? Enter return in decimal form, rounded to 4th digit, as in "0.1234"
- Assume 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 % घConsider the following information on large-company stocks for a period of years. Arithmetic Mean 12.78 3.3 Large-company stocks Inflation a. What was the arithmetic average annual return on large-company stocks in nominal terms? 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 arithmetic average annual return on large-company stocks in real terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Nominal return b. Real return 12.70% 10.26 %What is the expected return of Stock B given the information below about its returns across future states of nature? Enter return in decimal form, rounded to 4th digit, as in "0.1234"
- The distribution of returns for which one of the following for the period of 1926-2006 produces the widest bell curve (or distribution)? O inflation. O long-term government bonds O large-company stocks O U.S. Treasury bills. small-company stocksWhich one of the following categories has the widest frequency distribution of returns for the period 1926-2014? Multiple Choice Small-company stocks U.S. Treasury bills Long-term government bonds Inflation Large-company stockAssume 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 %
- Consider the following sample of annual holding period returns on Masco (a corporation) and the S&P500 Stock Index (includes dividends and capital gains). Assume that the Market Portfiolio is composed of individual US stocks only, so that the S&P 500 Stock Index is a good proxy of the Market Portfolio. Date r S&P500 1-Nov-07 1-Nov-06 1-Nov-05 1-Nov-04 3-Nov-03 1-Nov-02 1-Nov-01 1-Nov-00 1-Nov-99 2-Nov-98 3-Nov-97 1-Nov-96 1-Nov-95 1-Nov-94 1-Nov-93 2-Nov-92 1-Nov-91 1-Nov-90 1-Nov-89 1-Nov-88 2-Nov-87 -0.0749 0.0165 0.0352 0.0386 0.0071 0.0571 0.0752 -0.0801 0.0191 0.0591 0.0446 0.0734 0.0410 -0.0395 -0.0129 0.0303 -0.0439 0.0599 0.0165 -0.0189 -0.0853 r Masco -0.0756 0.0374 0.0444 0.0294 -0.0109 -0.0188 0.0626 0.0331 -0.1684 0.0242 0.0724 0.1641 0.0488 -0.0640 0.0748 0.0693 -0.1203 0.0675 0.0146 -0.0806 -0.1607 a) Use Excel to calculate Masco's beta given the data above. b) Use the data sample and your answer to b) to estimate the expected return on Masco stock according to the CAPM…Directions: Compute the returns, average of returns and standard deviation of the following stocks and the PSEI. 1. 2. AGI SM Year Stock Return x x (x--x)² Year Stock Return x x (x-x)² Price Price 30/1/2014 27.100 30/1/2014 704.500 28/2/2014 30.000 28/2/2014 694.000 31/3/2014 28.500 31/3/2014 705.000 30/4/2014 31.150 30/4/2014 725.000 30/5/2014 29.650 30/5/2014 786.000 30/6/2014 29.100 30/6/2014 816.000 31/7/2014 26.350 31/7/2014 797.000 29/8/2014 24.600 29/8/2014 772.000 30/9/2014 26.000 30/9/2014 803.500 31/10/2014 25.300 31/10/2014 783.500 28/11/2014 24.800 28/11/2014 804.500 29/12/2014 22.550 29/12/2014 815.000 PSEI Year Stock Return x X (x-X)? 30/6/2014 6,844.31 Price 31/7/2014 6,864.82 30/1/2014 6,041.19 29/8/2014 7,050.89 3. 28/2/2014 6,424.99 30/9/2014 7,283.07 31/10/2014 7,215.73 31/3/2014 6,428.71 28/11/2014 7,294.38 30/4/2014 6,707.91 29/12/2014 7,230.57 30/5/2014 6,647.65Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) State of Economy Probability ofState of Economy Security Returnif State Occurs Recession 0.40 −4.50 % Normal 0.50 13.00 Boom 0.10 25.00