Question

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%

Answer #1

**Answer is 8.66% and
11.58%**

Stock:

Expected Return = [0.12 + 0.05 + (-0.10) + 0.05 + 0.07 + 0.15] /
6

Expected Return = 0.34 / 6

Expected Return = 0.05667 or 5.667%

Variance = [(0.12 - 0.05667)^2 + (0.05 - 0.05667)^2 + (-0.10 -
0.05667)^2 + (0.05 - 0.05667)^2 + (0.07 - 0.05667)^2 + (0.15 -
0.05667)^2] / 5

Variance = 0.0375333 / 5

Variance = 0.0075067

Standard Deviation = (0.0075067)^(1/2)

Standard Deviation = 0.0866 or 8.66%

House:

Expected Return = [0.30 + 0.10 + (-0.05) + 0.05 + 0.10 + 0.15] /
6

Expected Return = 0.65 / 6

Expected Return = 0.10833 or 10.833%

Variance = [(0.30 - 0.10833)^2 + (0.10 - 0.10833)^2 + (-0.05 -
0.10833)^2 + (0.05 - 0.10833)^2 + (0.10 - 0.10833)^2 + (0.15 -
0.10833)^2] / 5

Variance = 0.0670833 / 5

Variance = 0.0134167

Standard Deviation = (0.0134167)^(1/2)

Standard Deviation = 0.1158 or 11.58%

Firm 2006 2007
2008 2009 2010 2011
Loewen 1.04 1.06 1.20
1.20 1.25 1.40
Morse 1.12 0.90
0.70 1.20 1.20 1.45
Huddleston 1.00 2.50
3.50 3.90 3.90 4.25
Meyer 2.25 2.10
2.10 2.73 2.80 2.95
Find the average annual growth rate of the dividends for each
firm listed in the following table:
What is the average annual growth rate of the dividends paid by
each firm

U.S. Civilian Labor Force, 2007-2016
Year
Labor Force
2007
153,918
2008
154,655
2009
153,111
2010
153,650
2011
153,995
2012
155,628
2013
155,151
2014
156,238
2015
157,957
2016
159,640
(d) Make forecasts using the following fitted
trend models for years 2017-2019. (Round your answers to
the nearest whole number.)
t
Linear
Quadratic
Exponential
11
158608
161301
12
159192
163354
13
159776
165653

Year
Consumer Price Index
Percentage Increase
2007
207.3
2008
215.3
2009
214.5
2010
218.1
2011
224.9
2012
229.6
2013
233.0
2014
236.7
2015
237.0
The following table gives the value of the consumer price index
for 2007 through 2015.
What was the inflation rate in 2008? ________________
What was the inflation rate in 2012 ___________________
What was the percentage increase of the average price level
from 2007 to 2015?__________
Inflation was highest in__________ and lowest in
__________year

Calendar Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Project Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Cash Flow from Investing
Signature bonus
Exploration & Predevelopment
55.00
45.00
Upstream Development
30.00
85.00
90.00
20.00
15.00
5.00
2.00
2.00
2.00
2.00
...

Australia's Current Account
Assumptions (millions USD)
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Goods: exports
107,011
124,913
142,421
189,057
154,777
213,782
271,719
257,950
254,180
240,704
188,345
Goods: imports
-120,383
-134,509
-160,205
-193,972
-159,216
-196,303
-249,238
-270,136
-249,700
-240,252
-207,658
Balance on goods
-13,372
-9,596
-17,784
-4,915
-4,439
17,479
22,481
-12,186
4,480
453
-19,313
Services: credit
31,047
33,088
40,496
45,240
40,814
46,968
51,653
53,034
53,550
54,240
49,716
Services: debit
-30,505
-32,219
-39,908
-48,338
-42,165
-51,313
-61,897
-65,405...

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?

Between about December 2007 and June 2009, the United States was
considered to be in a recession. The U.S. Gross Domestic Product
fell approximately 3% from the third quarter of 2008 to the third
quarter of 2009. Also, during December 2007 and June 2009, the
Standard and Poor’s 500 index dropped by 38% and the unemployment
rate climbed from 5% to 9.5%.
The macroeconomic situation affected almost all companies since
higher unemployment affected personal consumption, which dropped
from 10,140.3 Billion...

5. An investment has the following cash flows: July 12, 2008 $
-600 January 21, 2009 $ +200 March 7, 2010 $ +300 June 25, 2011 $
+400 September 18, 2012 $ +800 March 29, 2015 $ +200 September 30,
2017 $ -2,000
a. Calculate the Net Present Value of this investment. Assume
the annual discount rate is 15%.
b. Create a data table and graph illustrating the impact of the
discount rate on the Net Present Value of this...

39. On December 31, 2007 and 2008, Taft Corporation had 100,000
shares of common stock issued and outstanding. Additional
information:
Stockholders' equity at 12/31/2008
$4,500,000
Net income year ended 12/31/2008
1,200,000
Market price per share of common stock at 12/31/2008
144
The price-earnings ratio on common stock at December 31, 2008,
was
a.
10
b.
12
c.
14
d.
16
The balance sheet at the end of the first year of operations
indicates the following:
2009
Total current assets
$600,000...

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.

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