Question

The S&P 500 stock price closed at $98, $103, $107, $102, $111 over five successive weeks....

The S&P 500 stock price closed at $98, $103, $107, $102, $111 over five successive weeks. What is the weekly standard deviation of the stock price? What is the weekly standard deviation of the returns assuming no dividend were paid?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
. The average return on the stocks in the S&P 500(stock with 500 companies) over the...
. The average return on the stocks in the S&P 500(stock with 500 companies) over the past 90 years has been 9.8% and the standard deviation has been about 15%. (a) Infer that you take a simple random sample of 50 companies from the S&P 500. You calculate an average return of X¯ for this sample. What is the distribution of X¯? (b) Continuing from part (a), for a simple random sample of 50 companies, what is the probability that...
For General Electric (GE) how is the Market performance (Stock price/returns over the last five years...
For General Electric (GE) how is the Market performance (Stock price/returns over the last five years relative to the S&P 500 index and major ??? Please I dont understand this??
Assume the returns of a stock for the previous five years are as follows: 10%, 6%,...
Assume the returns of a stock for the previous five years are as follows: 10%, 6%, 5%, 9% and 10%? What is the historical standard deviation of this stock? If the returns are normally distributed, what is the range of returns expected using a 99% level of confidence? If the stock price is currently $30, what is the expected maximum and minimum price of the stock at the end of the year assuming 95% level of confidence. Assume no dividend...
Assume the returns of a stock for the previous five years are as follows: 10%, 6%,...
Assume the returns of a stock for the previous five years are as follows: 10%, 6%, 5%, 9% and 10%? What is the historical standard deviation of this stock? If the returns are normally distributed, what is the range of returns expected using a 99% level of confidence? If the stock price is currently $30, what is the expected maximum and minimum price of the stock at the end of the year assuming 95% level of confidence. Assume no dividend...
Assume the average stock price for companies making up the S&P 500 at certain time period...
Assume the average stock price for companies making up the S&P 500 at certain time period is $40, and the standard deviation is $10. Assume the stock prices are normally distributed. How high does a stock price have to be to put a company in the bottom 5%? $27.20 $20.40 $23.55 $18.78
The current level of the S&P 500 is 3000. The dividend yield on the S&P 500...
The current level of the S&P 500 is 3000. The dividend yield on the S&P 500 is 2%. The risk-free interest rate is 3%. What should be the fair price of a one-year maturity futures contract? - Now assume that the futures contract is also traded for 3000. Is contract over or underpriced? - Construct arbitrage portfolio for taking advantage of such price deviation. (refer to Chapter 17 slides and our in class work posted on Canvas) - Discuss whether...
Problem 1 The current market price of the Microsoft stock is $97 and the company has...
Problem 1 The current market price of the Microsoft stock is $97 and the company has just paid a 42 cents per share quarterly dividend. The Microsoft’s growth rate of dividends is 10% per year. According to the constant dividend growth model, what is the annualized expected return on Microsoft? You obtained additional information about Microsoft stock. You learned that the annual standard deviation of returns on Microsoft stock is approximately 33%. The correlation coefficient between returns on Microsoft stock...
The current market price of the Microsoft stock is $97 and the company has just paid...
The current market price of the Microsoft stock is $97 and the company has just paid a 42 cents per share quarterly dividend. The Microsoft’s growth rate of dividends is 10% per year. a. According to the constant dividend growth model, what is the annualized expected return on Microsoft? You obtained additional information about Microsoft stock. You learned that the annual standard deviation of returns on Microsoft stock is approximately 33%. The correlation coefficient between returns on Microsoft stock and...
Suppose the value of the S&P 500 Stock Index is currently $1,750. If the one-year T-bill...
Suppose the value of the S&P 500 Stock Index is currently $1,750. If the one-year T-bill rate is 5.3% and the expected dividend yield on the S&P 500 is 4.6%. a. What should the one-year maturity futures price be? (Do not round intermediate calculations.) Futures price $ b. What would the one-year maturity futures price be, if the T-bill rate is less than the dividend yield, for example, 3.6%? (Do not round intermediate calculations.) Futures price
The annual return on an S&P 500 index mutual fund over the next 40 years has...
The annual return on an S&P 500 index mutual fund over the next 40 years has a normal distribution with expected value of 10% and standard deviation of 22%. What is the expected ending value of $10,000 invested in the mutual fund? What would happen to the expected terminal wealth if the standard deviation were 30%? (show answer in excel)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT