Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

please answer study questions. Need as soon as possible 5. The figure in the popup window,, shows the one-year return distribution for RCS stock. Calculate:

please answer study questions. Need as soon as possible

image text in transcribed 5. The figure in the popup window,, shows the one-year return distribution for RCS stock. Calculate: a. The expected return. b. The standard deviation of the return. Note: Make sure to round all intermediate calculations to at least five decimal places. a. The expected return. The expected return is _______ %. (Round to two decimal places.) 6. Given the data from the following table: (Click on the Icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Yearly returns from 1926-2014 for the S&P 500, small stocks, corporate bonds, world portfolio, Treasury bills, and inflation (as measured by the CPI) Year 1926 S&P 500 0.11138 Small Stocks 0.07200 Corp Bonds 0.06285 World Portfolio 0.22800 Treasury Bills 0.03194 CPI 0.01188 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 0.37126 0.43308 0.08907 0.25257 0.43858 0.08861 0.52895 0.02341 0.47208 0.32801 0.35258 0.33199 0.00910 0.10082 0.11767 0.21076 0.25758 0.19694 0.36461 0.08180 0.05240 0.05099 0.18065 0.30579 0.24553 0.18501 0.01099 0.52404 0.31429 0.06627 0.10853 0.43344 0.11904 0.00483 0.26811 0.08784 0.22691 0.16358 0.12356 0.10105 0.23942 0.11002 0.08466 0.03986 0.14325 0.18936 0.14791 0.26539 0.25754 0.46872 0.50467 0.45583 0.50216 0.08696 1.87200 0.25209 0.64739 0.87508 0.53403 0.26275 0.00184 0.12340 0.13728 0.52504 1.00000 0.60408 0.82665 0.12608 0.02658 0.06609 0.21502 0.45908 0.09767 0.06472 0.05985 0.65232 0.22110 0.03459 0.15053 0.70923 0.18680 0.05004 0.30836 0.12950 0.18093 0.19405 0.36365 0.07302 0.77916 0.47611 0.32219 0.04503 0.16347 0.04222 0.35936 0.27327 0.06550 0.03377 0.04321 0.06343 0.02380 0.12198 0.05255 0.09728 0.06860 0.06220 0.02546 0.04357 0.04247 0.04512 0.01788 0.03119 0.03365 0.03101 0.03512 0.02558 0.00450 0.03707 0.04327 0.01891 0.00210 0.03427 0.02061 0.04658 0.01075 0.01792 0.04469 0.00849 0.00157 0.06722 0.03681 0.06204 0.03167 0.03988 0.02082 0.00255 0.01162 0.22457 0.02459 0.11179 0.09682 0.08323 0.02987 0.00233 0.25326 0.33463 0.07692 0.22574 0.39305 0.03030 0.66449 0.02552 0.22782 0.19283 0.16950 0.05614 0.01441 0.03528 0.18744 0.01189 0.19895 0.10240 0.11032 0.15124 0.03196 0.05730 0.05421 0.25477 0.22446 0.15822 0.04838 0.49823 0.24739 0.06581 0.06017 0.34456 0.23303 0.03492 0.20778 0.06212 0.15381 0.11247 0.09832 0.10116 0.21283 0.13941 0.03858 0.01984 0.19567 0.23547 0.14506 0.24480 0.03125 0.03824 0.04737 0.02347 0.01023 0.00806 0.00293 0.00155 0.00165 0.00175 0.00319 0.00041 0.00008 0.00058 0.00042 0.00262 0.00340 0.00321 0.00321 0.00352 0.00461 0.00979 0.01106 0.01213 0.01483 0.01642 0.01780 0.00863 0.01555 0.02422 0.03129 0.01415 0.02815 0.02582 0.02159 0.02724 0.03151 0.03518 0.03962 0.04705 0.04147 0.05294 0.06591 0.06383 0.04317 0.03891 0.07059 0.08078 0.02163 0.01229 0.00746 0.06420 0.09235 0.10465 0.00974 0.01286 0.03175 0.01231 0.03040 0.02950 0.00000 0.00912 0.09940 0.09041 0.02764 0.02445 0.02148 0.18224 0.08893 0.02904 0.02116 0.05946 0.06122 0.00641 0.00796 0.00790 0.00478 0.02853 0.02928 0.01796 0.01765 0.01301 0.00713 0.01275 0.01678 0.00963 0.01907 0.03476 0.03101 0.04637 0.06228 0.05524 0.03312 0.03413 0.08700 0.12328 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0.37250 0.23675 0.07388 0.06440 0.18353 0.32266 0.05053 0.21483 0.22500 0.06152 0.31648 0.18603 0.05171 0.16608 0.31686 0.03104 0.30466 0.07619 0.10079 0.01320 0.37578 0.22960 0.33363 0.28579 0.21042 minus0.09104 minus0.11886 minus0.22101 0.28685 0.10882 0.04911 0.15795 0.05494 minus0.36998 0.26464 0.15064 0.02112 0.16003 0.32388 0.13688 0.82769 0.57116 0.19915 0.20420 0.39698 0.29141 0.14617 0.32250 0.48048 0.02495 0.29125 0.05908 0.09204 0.20288 0.01488 0.36325 0.41799 0.22075 0.13792 minus0.01096 0.20056 0.21511 0.32080 minus0.11975 minus0.01260 minus0.02490 0.32781 minus0.05624 0.69151 0.31392 0.03988 0.26379 minus0.11100 minus0.45864 1.12127 0.33610 minus0.07155 0.21311 0.50814 minus0.04541 0.11039 0.14557 0.05510 0.01833 0.01558 0.04976 0.08977 0.34898 0.07317 0.17103 0.29486 0.20913 0.01578 0.13793 0.15310 0.08606 0.15869 0.10642 0.14662 minus0.02435 0.21991 0.04239 0.10847 0.10908 minus0.03037 0.11694 0.11461 0.11181 0.09229 0.06510 0.07734 0.04167 0.04742 0.13449 0.00018 0.07972 0.14703 0.04513 minus0.03067 0.11658 0.34493 0.14712 0.02002 0.18216 0.12671 0.27721 0.03305 0.11272 0.23280 0.05773 0.41770 0.42799 0.16764 0.23950 0.17194 0.16517 0.18966 minus0.04660 0.23129 0.05584 0.21318 0.13993 0.16227 0.24795 0.25354 minus0.12928 minus0.16521 minus0.19541 0.33761 0.15247 0.10023 0.20652 0.09566 minus0.40334 0.30793 0.12339 minus0.05017 0.16537 0.27365 0.05504 0.05821 0.05156 0.05152 0.07308 0.10690 0.11523 0.14856 0.10664 0.08847 0.09956 0.07677 0.06057 0.05384 0.06323 0.08221 0.07680 0.05507 0.03401 0.02899 0.03880 0.05532 0.05145 0.05082 0.04781 0.04561 0.05756 0.03779 0.01634 0.01018 0.01200 0.02963 0.04786 0.04675 0.01474 0.00097 0.00122 0.00043 0.00057 0.00028 0.00016 0.06962 0.04824 0.06720 0.09035 0.13308 0.12521 0.08912 0.03797 0.03833 0.03943 0.03793 0.01089 0.04423 0.04420 0.04656 0.06100 0.03081 0.02897 0.02755 0.02652 0.02555 0.03322 0.01688 0.01607 0.02697 0.03384 0.01563 0.02357 0.01880 0.03275 0.03417 0.02526 0.04086 0.00101 0.02709 0.01496 0.02967 0.01733 0.01518 0.00748

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Authors: J. Chris Leach, Ronald W. Melicher

2nd Edition

0324289235, 9780324289237

More Books

Students explore these related Finance questions

Question

The fear of making a fool of oneself

Answered: 3 weeks ago