Question

Jake had a stock with returns of 4%, -5%, -15%, and 16% in 2004, 2005, 2006, and 2007. The Avg. return of the stock for 5 years perioed 2004 – 2008 was 13%:

A – Whats the return for year 2008?

B – What is standard deviation for the all five years of the stock?

Answer #1

Let, returns be denoted by x_{i}

Given = 13% = 0.13

Therfore,

Hence, returns in 2008 will be 0.65 - (0.04-0.05-0.15+0.16) = 0.65

Standard deviation of the returns for all 5 years can be calculated using the STDEV.P function in Excel. We consider the data given as population rather than sample because the data set provided is the only set of data that is of interest to us. We are not interested in returns before 2004 or after 2008 or for that matter return on any other stock.

The standard deviation calculated using Excel would be
**27.94%**

The formula for calculating standard deviation of a population is where is the population mean and n is the number of observations.

So the answers are

A - 65%

B- 27.94%

You have the following historical annual total returns on
Terlingua Oil & Gas Exploration:
Year
Annual total return (%)
2001
0%
2002
-10%
2003
19%
2004
12%
2005
13%
2006
9%
2007
-4%
2008
5%
2009
2%
2010
4%
Calculate the sample standard deviation of annual return.

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...

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...

You have the following historical annual total returns on
Terlingua Oil & Gas Exploration:
Year
Annual total return (%)
2001
0%
2002
6%
2003
13%
2004
9%
2005
2%
2006
4%
2007
-1%
2008
-6%
2009
0%
2010
4%
Calculate the sample standard deviation of annual return.
Do not round at intermediate steps in your calculation. Express
your answer in percent. Round to two decimal places. Do not type
the % symbol.

question 6 You have the following historical annual total
returns on Terlingua Oil & Gas Exploration:
Year
Annual total return (%)
2001
3%
2002
-4%
2003
12%
2004
15%
2005
-2%
2006
3%
2007
17%
2008
0%
2009
-1%
2010
5%
Calculate the sample standard deviation of annual return.
Do not round at intermediate steps in your calculation. Express
your answer in percent. Round to two decimal places. Do not type
the % symbol.

A stock had returns of 15 percent, 14 percent, 18 percent, 5
percent, 16 percent, and 2 percent over the last six years. What is
the arithmetic return for the stock? What is the geometric return
for the stock?

Using the data in the following?
table, and the fact that the correlation of A and B is
0.59?, calculate the volatility? (standard deviation)
of a portfolio that is 80% invested in stock A and 20% invested in stock B.
Stock A Stock B
2005 -7 13
2006 15 28
2007 6 15
2008 -5 -7
2009 4 -4
2010 6 34
The Standard deviation of the
portfolio is ___%.

Year
Stock
House
2006
12%
30%
2007
5%
10%
2008
-10%
-5%
2009
5%
5%
2010
7%
10%
2011
15%
15%
Standard deviations are for stock and house respectively are
:
A. 7.66% 11.58%
B. 0.66% 0.58%
C. 8.66% 11.58%
D. 8.66% 1.58%

3.Stock W and Stock M’s annual returns are as following,
calculate the average return, standard deviation for Stock W, Stock
M, and an equally weighted portfolio WM (i.e., 50% in W and 50% in
M) with explanation.
A: ϱ= -1
Year
Stock W
Stock M
Portfolio WM
2008
40%
-10%
15%
2009
-10%
40%
15%
2010
40%
-10%
15%
2011
-10%
40%
15%
2012
15%
15%
15%
Avg. Return
Stan. Dev.
B: ϱ= 0.35
Year
Stock W
Stock M
Portfolio...

A stock had returns of 4 percent, 11 percent, 16 percent, -6
percent, and -2 percent for the past five years. Based on these
returns, what is the approximate probability that this stock will
return at least 20 percent in any one given year?
A) Greater than 1 percent but
less than 2.5 percent.
B) Greater than 2.5 percent but
less than 16 percent.
C) Greater than .5 percent but
less than 1 percent.
D) Less than .5 percent.
E)...

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