Question

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?

Answer #1

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

Cell reference -

. 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 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%, 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 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 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 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 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 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

Refer the table below on the average risk premium of the S&P
500 over T-bills and the standard deviation of that risk premium.
Suppose that the S&P 500 is your risky portfolio.
Average Annual Returns
S&P 500 Portfolio
Period
S&P 500
Portfolio
1-Month
T-Bills
Risk
Premium
Standard
Deviation
Sharpe
Ratio
1926–2015
11.77
3.47
8.30
20.59
0.40
1992–2015
10.79
2.66
8.13
18.29
0.44
1970–1991
12.87
7.54
5.33
18.20
0.29
1948–1969
14.14
2.70
11.44
17.67
0.65
1926–1947
9.25
0.91
8.33
27.99
0.30...

The? risk-free rate is 4.3?% and you believe
that the? S&P 500's excess return will be
11.9?% over the next year. If you invest in a
stock with a beta of
1.2 ?(and a standard deviation of
30?%), what is your best guess as to its expected
excess return over the next? year?
The expected excess return over the next year is ____%.
?(Round to two decimal? places.)

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