Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 30% 20% Normal 50% 12% -5% Slow 15% 4% 8% Recession 15% -10% 10% Calculate the standard deviation of stock B. (Enter percentages as decimals and round to 4 decimals)
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- You are given the returns for the following three stocks: Year Stock A Stock B Stock C 1 14% 13% -19% 14 17 34 14 18 31 4 14 22 14 17 2 Calculate the arithmetic return, geometric return, and standard deviation for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Stock A Stock B Stock C Arithmetic return % % % Standard deviation % % % Geometric return % % %Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 30% 20% Normal 50% 12% -5% Slow 15% 4% 8% Recession 15% -10% 10% Calculate the correlation (A,B). (Enter percentages as decimals and round to 4 decimals)Use the portion of the stock table shown below to answer the questions that follow. Round dollar amounts to the nearest cent, if necessary. YTD %CHG 52- HI Week LO STOCK DIV YLD % VOL 100s CLOSE NET CHG 2.8 37.43 21.10 A1 0.99 3.7 789 27.02 –0.1 2.4 48.30 30.78 B1 ... 1303 41.68 0.4 If you purchased 400 shares of B1 stock at $45.03, what would the loss be if the shares were sold at the closing price indicated in the table.
- Use the portion of the stock table shown below to answer the questions that follow. Round dollar amounts to the nearest cent when necessary. YTD %CHG 52- HI Week LO STOCK DIV YLD % VOL 100s CLOSE NET CHG 4.8 32.63 16.29 A1 0.99 3.7 795 26.59 0.43 3 46.98 31.94 B1 ... 725 38.76 –0.13 (i) If you own 610 shares of A1, what dividend do you receive this year? (ii) What was the price of a share of stock B1 at the close of the trading day yesterday?The index model has been estimated for stocks A and B with the following results: = 0.12 +0.670RM+еA RA= RB=0.04 +1.512RM + еB °M= 0.330 σ(eд) = 0.20 σ(eB) = 0.10 What is the covariance between each stock and the market index? (Round your answers to 4 decimal places.) Stock A covariance Stock B covarianceConsider the following information on two stocks: P(State) Stock A Stock B Boom 20% 30% 20% Normal 50% 12% -5% Slow 15% 4% 8% Recession 15% -10% 10% Calculate the expected return for stock A. (Enter percentages as decimals and round to 4 decimals)
- 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 6,647.65You are given the returns for the following three stocks: Year 1 2 3 4 5 Stock A 9.00% 9.00 9.00 9.00 9.00 Stock B 9.00% Arithmetic return Standard deviation Geometric return 14.00 6.00 4.00 12.00 Stock C -24.00% 37.00 16.00 9.00 7.00 Calculate the arithmetic return, geometric return, and standard deviation for each stock. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. > Answer is complete but not entirely correct. Stock B 9.00 13.60 Stock A 9.00 % 0.00 % 1.76 X % % % 3.70 X % Stock C 9.00 18.38 1.10 % % %You are given the returns for the following three stocks: Stock B Stock C Stock A 14.00% 14.00% -19.00% 14.00 14.00 34.00 14.00 22.00 37.00 14.00 14.00 14.00 4.00 Year 1 2 3 4 5 7.00 13.00 Calculate the arithmetic return, geometric return, and standard deviation for each stock. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Arithmetic return Standard deviation Geometric return Stock A 14.01 % 0.00 % 14.01 % Stock B 14.00 % 14.01 % Stock C 14.00 % 14.02 %
- Following is information for two stocks: Investment r σ Stock X 8% 10% Stock Y 24% 36% Which stock has the greater relative risk? (show the computation of the relative risk for X & Y.)Consider a market value-weighted index consisting of 3 stocks: A, B, and C. The stocks' prices at time 0 (p0) and time 1 (p1) are given below, along with the number of shares outstanding. Calculate the index levels at time 0. Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321. stock p0 p1 outstanding shares 43 45 200 69 50 500 11 12 600 A B CThe table below describes the price per share (P) and the number of shares outstanding (Q) at time = 0 and then again at time = 1. The subscripts indicate which time (t = 0 or 1) that the information applies to. Stock A Stock B Po 90 50 Qo 100 200 P₁ 95 45 Q₁ 100 200 (A) What is the "market cap" for Stock A at time 0? 9000 (B) Assume you have an index that includes only these 2 stocks. What is the value-weighted rate of return for the index from time O to time 1? Choose the answer closest to the correct number. -0.026 (C) Assume someone asked you calculate the equal-weighted return for a portfolio that included these 2 stocks. What is the equal-weighted return from time 0 to time 1? 0.055