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[Questions 26-27] An investor considers buying Tencent stocks. Prior to the pur- chase, the investor wants to measure the stock's risk using data. Tencent's historical
[Questions 26-27] An investor considers buying Tencent stocks. Prior to the pur- chase, the investor wants to measure the stock's risk using data. Tencent's historical prices are provided in the excel file "Tencent.xlsx" posted on Canvas. Note that column B in the spreadsheet contains daily adjusted-close prices. What is the 5%-lowest daily return for this stock? (a) -10.75% (b) -3.06% (C) -2.13% (d) -1.32% The investor is concerned about the possibility that the daily return is negative. What is the expected return conditional on that return is negative? (a) -4.45% (b) -3.49% (c) - 1.45% (d) 0.13% [Questions 26-27] An investor considers buying Tencent stocks. Prior to the pur- chase, the investor wants to measure the stock's risk using data. Tencent's historical prices are provided in the excel file "Tencent.xlsx" posted on Canvas. Note that column B in the spreadsheet contains daily adjusted-close prices. What is the 5%-lowest daily return for this stock? (a) -10.75% (b) -3.06% (C) -2.13% (d) -1.32% The investor is concerned about the possibility that the daily return is negative. What is the expected return conditional on that return is negative? (a) -4.45% (b) -3.49% (c) - 1.45% (d) 0.13%
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