Question 1 The following are the monthly rates of returns for two stocks, Stock A and Stock Bo 2022. Month 1 2 3 4 5 6 7 8 9 10 11 12 Stock A 2.52% -3.2% 0.54% 1.32% 2.56% 1.10% 1.85% 0.58% 1.98% 0.05% 1.15% 2.23% Stock B 1.37% 1.58% 0.98% -0.78% 0.98% 1.35% -2.04% 0.87% 2.09% -0.07% 1.78% 0.63%
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- Calculate arithmetic and geometric means for stock B: Year A B C D E 1 9.7% 10.7% 70.3% 13.0% 23.1% 2 1.1% 23.4% -54.0% 15.2% -16.0% 3 -38.9% -32.1% 40.2% -40.0% 0.8% 4 34.5% 26.3% 94.5% 57.2% 13.7% 5 14.6% 11.8% 7.3% -4.2% 41.3% 6 3.7% 1.9% 25.5% 3.9% 5.7% Geometric mean equals 10.0%; arithmetic mean equals 11.4% Arithmetic mean equals 7.0%; geometric mean equals 4.9% Arithmetic mean equals 7.5%; geometric mean equals 5.6% Geometric mean equals 6.5%; arithmetic mean equals 4.9%What is Stock X's geometric returns if it has the following returns? Year 1 8% Year 2 - 5% Year 3 10% Year 4 - 6% Year 5 15% a. 4.1%. b. 5.2% c. 6.8% d. 8.5%Q#1: Stocks A and B have the following historical returns:Year Stock Alpha’s Returns Stock Charlie’s Returns2013 18% -14.5%2014 33% 21.8%2015 15% 30.5%2016 -0.5% -7.6%2017 27% 26.3%Required:a. Calculate the average rate of return for each stock during the 5-year period.b. Assume that someone held a portfolio consisting of 60% of Stock…
- Question 7 Below is annual tock return data on ABC Corp and XYZ, Inc. Year ABC XYZ 2010 8% -3% 2011 20% 0% 2012 -8% 20% 2013 4% 8% v (a) What is the average return and standard deviation for each stock? (Round answers to 2 decimal places, e.g. 52.75.) ABC XYZ Average return Standard deviation (b) The parts of this question must be completed in order. This part will be available when you complete the part above.Day 5/4/2020 5/5/2020 5/6/2020 5/7/2020 5/8/2020 LMT HPR 345.82 321.56 -7.015% 337.21 4.867% 341.11 1.157% 355.32 4.166% S/9/2020 362.31 1.967% 12. What is WEC stock Total Geometric Return based on the table above? A. 1.028% В. 3.249% C. 4.768% D. 5.141% E. 10.476%Q2 - Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7Stock X 4% -2% 5% -1% 10% 7% 12%Stock Y -3% 7% 4% 2% 2% 8% -3% Consider a portfolio of 10% stock X and 90% stock Y. What is the mean of portfolio returns? Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
- 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)For items 11-14, refer to the listing on stocks below. 50 weeks HI LO STOCK DIV YLD% VOL(100s) CLOSE NETCHG 80 www 2.1 2.8 1 500 75 -5 50 25 YYY 1.8 5.0 1 200 36 3 11. For stock Www, what was the lowest price of stock for the last 50 weeks? В. 60 С. 50 A. 80 D. 25 12. What was the annual percentage yield last year for stock YYY? В. 2.1 С. 2.8 A. 1.8 D. 5.0Use 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?
- 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.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. P35.82Consider 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)