Question

Use the following information for the next three questions. Years Stock Price Stock Return 0 210...

Use the following information for the next three questions.

Years

Stock Price

Stock Return

0

210

1

165

-21%

2

182

10%

3

120

-34%

4

163

36%

5

178

9%

6

198

11%

What is the mean and the standard deviation of this stock?

A. 1.5% and 25%

B. 1.85%, and 25.30%  

C. 1.85% and 25.10%

D. 2.31% and 24.90%

Homework Answers

Answer #1

Mean and satandard deviation:

B. 1.85%, and 25.30%

Formulas:

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Use the following information to answer the next three questions Scenario Probability Return on Value Stock...
Use the following information to answer the next three questions Scenario Probability Return on Value Stock Fund Return on Income Stock Fund Recession 0.25 -14% -12% Normal Growth 0.25 17% 6% Boom 0.50 33% 5% Expected Return 1.00% Standard Deviation 7.52% What is the expected return on Value Stock Funds? 16.25% 15.45% 17.25% -18.25% What is the standard deviation of Value Stock Funds? 14.25% 19.19% 16.19% 22.25% What is the expected return if you invested 80% in value stock funds...
Use the following information for the next 2 questions: Stock Value E(R) St. Dev Walmart $21,000...
Use the following information for the next 2 questions: Stock Value E(R) St. Dev Walmart $21,000 6% 9% Netflix $49,000 10% 12% 47) What is the expected return of this portfolio? Question 47 options: 6.4% 8.8% 9.6% 11.2% What is the standard deviation of this portfolio if their correlation is − 0.8? Question 48 options: 4.22% 6.45% 10.68% 8.40%
You are given the following information about the stocks in a two-stock portfolio Stock Return Portfolio...
You are given the following information about the stocks in a two-stock portfolio Stock Return Portfolio Weight Standard Deviation Blue Hotel Inc. 22% 45% 9% Joys Food Inc. 25% 55% 11% The correlation coefficient between the two stocks is 0.5. Using the information above, calculate the following: The expected return of the portfolio, The variance of the portfolio, The standard deviation of the portfolio.
You are considering two stocks and have determined the following information: Stock A Return Probability of...
You are considering two stocks and have determined the following information: Stock A Return Probability of the Return 30 % 10 % 15 50 13 40 Stock B Return Probability of the Return 34 % 25 % 17 15 6 60 Which of the two stocks has the higher expected return? Round your answers to two decimal places. The return on Stock A: 15.7 % The return on Stock B: 14.65 % Stock A has the higher expected return. Which...
Use the following information for the next six questions. The index model for stock A has...
Use the following information for the next six questions. The index model for stock A has been estimated with the following result: rA - rf = -0.02 + 1.2 (rM - rf) + eA. If σM = 0.2 and R2A = 0.64: a) what is the stock's alpha? b) What is the stock's beta? c) What is the stock's standard deviation? d) What is the stock's systematic risk? e) What is the stock's firm-specific risk?
HW #6 1. Use the following information to answer the questions. State Probability Stock A return...
HW #6 1. Use the following information to answer the questions. State Probability Stock A return Stock B return Good Normal Bad 0.3 0.6 0.1 8% 2% -3% 5% 1% -1% (a). Given that you form a portfolio by investing $4,000 in Stock A and $1,000 in Stock B, what is the expected return on your portfolio? (b).What is the variance and standard deviation of your portfolio? (c). Suppose that Stock A has a beta of 1.5 and Stock B...
The Uniform Distribution Use the following information to answer the next ten questions in excel ....
The Uniform Distribution Use the following information to answer the next ten questions in excel . The data that follow are the square footage (in 1,000 feet squared) of 28 homes. 1.5 2.4 3.6 2.6 1.6 2.4 2.0 3.5 2.5 1.8 2.4 2.5 3.5 4.0 2.6 1.6 2.2 1.8 3.8 2.5 1.5 2.8 1.8 4.5 1.9 1.9 3.1 1.6 The sample mean = 2.50 and the sample standard deviation = 0.8302. The distribution can be written as X ~ U(1.5,...
The following information is available for two stocks: Stock Shares Price per share Expected Return Standard...
The following information is available for two stocks: Stock Shares Price per share Expected Return Standard Deviation A 500 $40 14% 18% B 400 $25 21% 22% You are fully invested in the two stocks. The correlation coefficient between the two stock returns is .80 a. Compute the weights of the two stocks in your portfolio. b. Compute the portfolio expected return. c. Compute the portfolio standard deviation. d. You consider selling 250 shares of stock A, and buy with...
Use the following information to answer the next two questions. A stock currently trades for $110...
Use the following information to answer the next two questions. A stock currently trades for $110 per share. Call options on the stock are available with a strike price of $115. The options expire in 20 days. The annual risk free rate is 4% and the expected standard deviation is 0.40. Find the value of a call option using the Black-Scholes option pricing model (Assume 365 days per year) Use the Black-Scholes option pricing model to find the value of...
Problem 8-07 You are considering two stocks and have determined the following information: Stock A Return...
Problem 8-07 You are considering two stocks and have determined the following information: Stock A Return Probability of the Return 21 % 20 % 15 20 5 60 Stock B Return Probability of the Return 23 % 20 % 14 20 9 60 Which of the two stocks has the higher expected return? Round your answers to two decimal places. The return on Stock A:   % The return on Stock B:   % -Does Stock A or Stock B 3 have the higher...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT