Question

The table below displays returns associated with a company's shares over the last 15 years.

Year | Return (% pa) |
---|---|

2005 | 23 |

2006 | 17 |

2007 | 11 |

2008 | 15 |

2009 | 12 |

Year | Return (% pa) |
---|---|

2010 | 31 |

2011 | 2 |

2012 | 16 |

2013 | 8 |

2014 | 31 |

Year | Return (% pa) |
---|---|

2015 | 29 |

2016 | 5 |

2017 | 26 |

2018 | 6 |

2019 | 1 |

Based on this historic data, calculate the expected return on the shares and its standard deviation. Give your answers as a percentage per annum to 2 decimal places.

a)Expected return = % pa

b)Standard deviation = % pa

Answer #1

Year |
Return |
Weight based on years |
Return*Weight |
Return - Expected return |
(Return - Expected return)^2 |

X | X-X' | (X-X')^2 | |||

2005 | 23 | 15 | 345 | 6.4 | 40.96 |

2006 | 17 | 14 | 238 | 0.4 | 0.16 |

2007 | 11 | 13 | 143 | -5.6 | 31.36 |

2008 | 15 | 12 | 180 | -1.6 | 2.56 |

2009 | 12 | 11 | 132 | -4.6 | 21.16 |

2010 | 31 | 10 | 310 | 14.4 | 207.36 |

2011 | 2 | 9 | 18 | -14.6 | 213.16 |

2012 | 16 | 8 | 128 | -0.6 | 0.36 |

2013 | 8 | 7 | 56 | -8.6 | 73.96 |

2014 | 31 | 6 | 186 | 14.4 | 207.36 |

2015 | 29 | 5 | 145 | 12.4 | 153.76 |

2016 | 5 | 4 | 20 | -11.6 | 134.56 |

2017 | 26 | 3 | 78 | 9.4 | 88.36 |

2018 | 6 | 2 | 12 | -10.6 | 112.36 |

2019 | 1 | 1 | 1 | -15.6 | 243.36 |

Total | 120 | 1992 | 1530.8 |

Expected return = | 1992/120 | |

= | 16.6 |

Variance = Σ(X-X')^2 / n-1

= 1530.8 / 15-1

= 109.34

Standard deviation = √Variance

= √109.34

= 10.46

The table below displays returns associated with a company's
shares over the last 15 years.
Year
Return
(% pa)
2005
9
2006
-2
2007
20
2008
-4
2009
18
Year
Return
(% pa)
2010
8
2011
19
2012
1
2013
13
2014
-2
Year
Return
(% pa)
2015
35
2016
-3
2017
28
2018
18
2019
31
Based on this historic data, calculate the expected return on
the shares and its standard deviation. Give your answers as a
percentage per...

Question 1
The table below displays returns associated with a company's
shares over the last 15 years.
Year
Return
(% pa)
2004
19
2005
12
2006
17
2007
10
2008
32
Year
Return
(% pa)
2009
14
2010
4
2011
4
2012
30
2013
15
Year
Return
(% pa)
2014
26
2015
2
2016
10
2017
3
2018
28
Based on this historic data, calculate the expected return on
the shares and its standard deviation. Give your answers as a...

Use the table for the question(s) below.
Consider the following realized annual returns:
Year End
Index Realized Return
Stock A Realized Return
2006
23.6%
46.3%
2007
24.7%
26.7%
2008
30.5%
86.9%
2009
9.0%
23.1%
2010
-2.0%
0.2%
2011
-17.3%
-3.2%
2012
-24.3%
-27.0%
2013
32.2%
27.9%
2014
4.4%
-5.1%
2015
7.4%
-11.3%
The variance of the returns on the Index from 2006 to 2015 is
closest to:

How can I do regression analysis for Sales Revenue for Macys
comparing it to TJX? Please show work and example in Excel if it's
easier.
Net Profit Margin
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Sales Revenue - MACYS
$
15,776,000.00
$
22,390,000.00
$
26,970,000.00
$
26,313,000.00
$ 24,892,000.00
$
23,489,000.00
$
25,003,000.00
$
26,405,000.00
$
27,686,000.00
$
27,931,000.00
$
28,105,000.00
$
27,079,000.00
$
25,778,000.00
$
24,837,000.00
Net Profit Margin
2005
2006
2007...

Suppose you are given the following end of year stock price data
for Random Inc. stock. Assume the returns are normally distributed,
calculate the standard deviation of the annual returns. (Enter
percentages as decimals and round to 4 decimals). Year Price 2005
43.65 2006 44.01 2007 45.77 2008 53.04 2009 45.67 2010 59.05 2011
46.88 2012 49.24 2013 43.99 2014 42.67 2015 48.14

The following data is provided for a market 500 Index: Year
Total return Year Total return 2000 16.0% 2010 2.0% 2001 8.0% 2011
3.0% 2002 -3.0% 2012 3.0% 2003 1.0% 2013 4.0% 2004 5.0% 2014 5.0%
2005 21.0% 2015 4.0% 2006 43.0% 2016 3.0% 2007 4.9% 2017 3.5% 2008
-7.0% 2018 4.5% 2009 0.1% 2019 5.8% Calculate the last 10 -year
arithmetic average annual rate of return on the market Index.
3.78%
2.69%
0.37%
3.93%

The following data is provided for a market 500 Index: Year
Total return Year Total return 2000 16.0% 2010 2.0% 2001 8.0% 2011
3.0% 2002 -3.0% 2012 3.0% 2003 1.0% 2013 4.0% 2004 5.0% 2014 5.0%
2005 21.0% 2015 4.0% 2006 43.0% 2016 3.0% 2007 4.9% 2017 3.5% 2008
-7.0% 2018 4.5% 2009 0.1% 2019 5.8% Calculate the 20 -year
geometric average annual rate of return on the market Index.
5.91%
3.32%
3.77%
0.28%

Consider the following realized annual returns: Year End Index
Realized Return Stock A Realized Return 2006 23.6% 46.3% 2007 24.7%
26.7% 2008 30.5% 86.9% 2009 9.0% 23.1% 2010 -2.0% 0.2% 2011 -17.3%
-3.2% 2012 -24.3% -27.0% 2013 32.2% 27.9% 2014 4.4% -5.1% 2015 7.4%
-11.3% The average annual return on the Index from 2006 to 2015 is
closest to: 8.75% 7.10% 9.75% 4.00%

The table below reports the earnings per share of common stock
for Home Depot Inc. for 2003 through 2015. Year Earnings per Share
2003 $ 1.64 2004 1.94 2005 2.33 2006 2.81 2007 2.81 2008 2.44 2009
1.40 2010 1.66 2011 2.04 2012 2.55 2013 3.80 2014 6.40 2015 9.63
Click here for the Excel Data File Develop an index, with 2003 as
the base, for earnings per share for years 2004 through 2015.
(Round your answers to 1 decimal...

The following information is from General Electric Corporation
annual reports.
YearRevenue ($ million)Employees
Year
Revenue ($ million)
Employees (000)
2004
134
298
2005
152
302
2006
157
316
2007
168
323
2008
177
336
2009
183
324
2010
150
297
2011
147
290
2012
147
300
2013
146
308
2014
149
302
2015
151
326
Compute a simple index for the number of employees for GE using
the period 2004−06 as the base. (Round your answers to 1
decimal place.)...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 53 seconds ago

asked 7 minutes ago

asked 7 minutes ago

asked 10 minutes ago

asked 27 minutes ago

asked 32 minutes ago

asked 47 minutes ago

asked 53 minutes ago

asked 55 minutes ago

asked 58 minutes ago

asked 1 hour ago

asked 1 hour ago