Using the data in the following table, estimate the average return and volatility for each stock....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns Year 2008 2009 2010 2011 2012 2013 The return of stock A is The return of stock B is The variance of stock A is The variance of stock B is Stock A 10% 5% 10% - 2% 2% 14% %. (Round to two decimal places.) %. (Round to two decimal places.) (Round to five decimal places.) (Round to five decimal places.) The standard deviation of stock A is Stock B 12% 37% 7% - 2% - 15% 27% The standard deviation of stock B is %. (Round to two decimal places.) %. (Round to two decimal places.) Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns Year 2008 2009 2010 2011 2012 2013 The return of stock A is The return of stock B is The variance of stock A is The variance of stock B is Stock A 10% 5% 10% - 2% 2% 14% %. (Round to two decimal places.) %. (Round to two decimal places.) (Round to five decimal places.) (Round to five decimal places.) The standard deviation of stock A is Stock B 12% 37% 7% - 2% - 15% 27% The standard deviation of stock B is %. (Round to two decimal places.) %. (Round to two decimal places.)
Expert Answer:
Answer rating: 100% (QA)
Alright lets calculate the average return and volatility for each stock based on the given data 1 ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
What will be displayed in the list box? for (int i = 2; i < 5; i++) { } outputListBox.Items.Add(i*i);
-
Use the thermodynamic data below to determine the standard free energy change, AG, for the following reaction at 25C. NH4Cl(s) H4*(aq) + Cl(aq) - = 14,0 kJ S for NH4*(aq) = 111.2 J/mol K S for...
-
Suppose you are going to put up your own company, list down at least ten of your possible contributions to the socio-economic development in your community. Name of Business: Name of Owner/s: 2. 4....
-
Following is a scrambled list of accounts from the income statement and balance sheet of Belmond, Inc.: Inventory ...........................................$ 6,500 Common stock...
-
The DoorCo Corporation is a leading manufacturer of garage doors. All doors are manufactured in their plant in Carmel, Indiana, and shipped to distribution centers or major customers. DoorCo recently...
-
Discuss the personnel and sound practices aspects of an internal control environment that relate to cash receipts transactions.
-
A put and a call have the following terms: The price of the stock is currently $29. You sell the stock short. Illustrate how to use the call or the put to reduce your risk exposure. a) What is the...
-
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3.20 DLH per unit. For March, the company planned production of 10,000 units (80% of its...
-
John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111111), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303....
-
MOZZA Taste Company is a manufacturer of macaroni. The following are part of its production cycle procedures. The production planning and control department was monitored by Harvey as the head of the...
-
What project or set of projects would be in your capital budget if SS and LL were (a) independent or (b) mutually exclusive?
-
Define partially convertible currency.
-
What is a convertible currency?
-
What does it mean to say that the dollar is depreciating with respect to the euro?
-
What condition regarding cash flows would cause more than one IRR to exist?
-
3. Suppose everyone in the U.S. earns $40,000 per year with certainty. However, each person can get sick. If they get sick, they incur $30,000 in medical expenses, and so their income net of medical...
-
Consider the activities undertaken by a medical clinic in your area. Required 1. Do you consider a job order cost accounting system appropriate for the clinic? 2. Identify as many factors as possible...
-
Your storage firm has been offered $100,000 in one year to store some goods for one year. Assume your costs are $95,000, payable immediately, and the cost of capital is 8%. Should you take the...
-
NatNah, a builder of acoustic accessories, has no debt and an equity cost of capital of 15%. NatNah decides to increase its leverage to maintain a market debt-to-value ratio of 0.5. Suppose its debt...
-
Slow n Steady, Inc., has a stock price of $30, will pay a dividend next year of $3, and has expected dividend growth of 1% per year. What is your estimate of Slow n Steadys cost of equity capital?
-
Diagram the situation described in Exercise 15.3 along the lines of Figure 15.2. Exercise 15.3 In Section 12.3 we looked at a set of data on whether children who are stressed from their parents...
-
Two graduate students have recently completed their dissertations. Each used a t test for two independent groups. One found a barely significant t using 10 subjects per group. The other found a...
-
If = 15, n = 25, and we are testing H 0 : = 100 versus H 1 : > 100, what value of the mean under H 1 would result in power being equal to the probability of a Type II error?
Study smarter with the SolutionInn App