Question
The following are the historic returns for the Chelle Computer Company: Year Chelle Computer General Index...
The following are the historic returns for the Chelle Computer Company:
| Year | Chelle Computer | General Index | ||
| 1 | 30 | 18 | ||
| 2 | 9 | 13 | ||
| 3 | -6 | 16 | ||
| 4 | 8 | -7 | ||
| 5 | 10 | 13 | ||
| 6 | 4 | 9 | ||
Based on this information, compute the following:
- The correlation coefficient between Chelle Computer and the General Index. Do not round intermediate calculations. Round your answer to two decimal places.
- The standard deviation for the company and the index. Do not
round intermediate calculations. Round your answers to four decimal
places.
Chelle Computer: %
General Index: %
- The beta for the Chelle Computer Company. Do not round intermediate calculations. Round your answer to four decimal places.
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
The following are the historic returns for the Chelle Computer Company: Year Chelle Computer General Index...
The following are the historic returns for the Chelle Computer
Company:
Year
Chelle Computer
General Index
1
37
14
2
5
10
3
-9
12
4
8
-11
5
12
16
6
6
9
Based on this information, compute the following:
The correlation coefficient between Chelle Computer and the
General Index. Do not round intermediate calculations. Round your
answer to two decimal places.
The standard deviation for the company and the index. Do not
round intermediate calculations. Round your answers...
eBook Problem 7-05 The following are the historic returns for the Chelle Computer Company: Year Chelle...
eBook
Problem 7-05
The following are the historic returns for the Chelle Computer
Company:
Year
Chelle Computer
General Index
1
30
17
2
5
15
3
-8
14
4
9
-8
5
13
15
6
7
9
Based on this information, compute the following:
The correlation coefficient between Chelle Computer and the
General Index. Do not round intermediate calculations. Round your
answer to two decimal places.
The standard deviation for the company and the index. Do not
round intermediate calculations....
eBook Problem 7-05 The following are the historic returns for the Chelle Computer Company: Year Chelle...
eBook
Problem 7-05
The following are the historic returns for the Chelle Computer
Company:
Year
Chelle Computer
General Index
1
34
12
2
8
14
3
-15
12
4
6
-12
5
13
11
6
7
8
Based on this information, compute the following:
The correlation coefficient between Chelle Computer and the
General Index. Do not round intermediate calculations. Round your
answer to two decimal places.
The standard deviation for the company and the index. Do not
round intermediate calculations....
Suppose that the index model for stocks A and B is estimated from excess returns with...
Suppose that the index model for stocks A and
B is estimated from excess returns with the following
results:
RA = 4.0% + 0.50RM +
eA
RB = –1.2% + 0.70RM +
eB
σM = 17%;
R-squareA = 0.26;
R-squareB = 0.18
What are the covariance and correlation coefficient between the
two stocks? (Do not round intermediate calculations.
Calculate using numbers in decimal form, not percentages. Round
your answers to 4 decimal places.)
Covariance:
Correlation coefficient:
Suppose that the index model for stocks A and B is estimated from excess returns with...
Suppose that the index model for stocks A and B is estimated
from excess returns with the following results: RA = 3.0% + 1.05RM
+ eA RB = –1.2% + 1.20RM + eB σM = 29%; R-squareA = 0.29; R-squareB
= 0.14 What are the covariance and correlation coefficient between
the two stocks? (Do not round intermediate calculations. Calculate
using numbers in decimal form, not percentages. Round your answers
to 4 decimal places.)
You are given the following information concerning a stock and the market: Returns Year Market Stock...
You are given the following information concerning a stock and
the market:
Returns
Year
Market
Stock
2011
10
%
25
%
2012
10
10
2013
21
5
2014
−15
−30
2015
37
16
2016
15
17
a. Calculate the average return and standard
deviation for the market and the stock. (Use Excel to
complete the problem. Do not round intermediate calculations. Enter
your answers as a percent rounded to 2 decimal
places.)
Market
Stock
Average Return
Standard Deviation
b. Calculate...
You are given the following information concerning a stock and the market: Returns Year Market Stock...
You are given the following information concerning a stock and
the market:
Returns
Year
Market
Stock
2011
16
%
28
%
2012
20
20
2013
26
5
2014
−12
−23
2015
35
16
2016
15
28
a. Calculate the average return and standard
deviation for the market and the stock. (Use Excel to
complete the problem. Do not round intermediate calculations. Enter
your answers as a percent rounded to 2 decimal
places.)
Market
Stock
Average return
%
%
Standard deviation...
Suppose that the index model for stocks A and B is estimated from excess returns with...
Suppose that the index model for stocks A and B is estimated
from excess returns with the following results:
RA = 4.5% + 1.40RM +
eA
RB = –2.2% + 1.70RM +
eB
σM = 24%;
R-squareA = 0.30;
R-squareB = 0.20
Assume you create a portfolio Q, with investment
proportions of 0.50 in a risky portfolio P, 0.30 in the
market index, and 0.20 in T-bill. Portfolio P is composed
of 60% Stock A and 40% Stock B.
a....
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time:...
Historical Returns: Expected and Required Rates of Return
You have observed the following returns over time:
Year
Stock X
Stock Y
Market
2009
14%
15%
13%
2010
20
7
9
2011
-15
-8
-12
2012
4
2
2
2013
24
13
18
Assume that the risk-free rate is 4% and the market risk premium
is 6%. Do not round intermediate calculations.
What is the beta of Stock X? Round your answer to two decimal
places.
What is the beta of...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time:...
Historical Returns: Expected and Required Rates of Return
You have observed the following returns over time:
Year
Stock X
Stock Y
Market
2009
16%
14%
13%
2010
19
6
9
2011
-15
-2
-13
2012
2
1
1
2013
23
11
18
Assume that the risk-free rate is 3% and the market risk premium
is 6%. Do not round intermediate calculations.
What is the beta of Stock X? Round your answer to two decimal
places.
What is the beta of...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 15 minutes ago
asked 16 minutes ago
asked 20 minutes ago
asked 20 minutes ago
asked 21 minutes ago
asked 40 minutes ago
asked 41 minutes ago
asked 58 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago