Question
Please answer the below questions in an Excel spreadsheet Q-1: Rate of return and standard deviation A stock currently is paying 5% return. Calculate the
Please answer the below questions in an Excel spreadsheet
Q-1:
Rate of return and standard deviation
A stock currently is paying 5% return. Calculate the following investment's expected rate of return and its standard deviation based on the data below.
Data
Probability Return
0.15 -0.05
0.25 0.15
0.2 0.2
0.4 0.25
Q-2:
Holding - Period Return
Calculate the following investment's, the holding-period return
Data
Time Stock Price (SAR)
1 20
2 23
3 21
4 25
Q-3:
Holding - Period Return
Calculate the following investment's, the holding-period gain and return based on the data below.
Data
Purchase Price = 34.22
Selling Price = 36-68
Shares Sold = 22
Q-4:
Capital Asset Pricing Model
Based on the data below, Calculate the required rate of return for each stock
Data
Stock Beta
A 0.85
B 0.6
C 1.4
Risk-free rate 0.05
Market rate 0.12
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