Question
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 the correlation between the stock and the market, as well as the stock’s beta. (Use Excel to complete the problem. Do not round intermediate calculations. Round your correlation answer to 2 decimal places and beta answer to 4 decimal places.)
| Correlation | |
| Beta |
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
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...
Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock...
Assume these are the stock market and Treasury bill returns for
a 5-year period:
Year Stock Market Return (%) T-Bill Return (%)
2011 −32.93 5.10
2012 32.80 1.40
2013 13.56 0.32
2014 4.98 0.09
2015 20.76 0.11
a. What was the risk premium on common stock in each
year? (Do not round intermediate calculations.
Enter your answers as a percent rounded to 2 decimal
places.)
b. What was the average risk premium? (Do not round intermediate
calculations. Enter your answer...
Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock...
Assume these are the
stock market and Treasury bill returns for a 5-year period:
Year
Stock Market Return (%)
T-Bill Return (%)
2011
−35.83
2.80
2012
30.00
1.30
2013
15.66
0.20
2014
2.08
0.05
2015
17.96
0.07
What was the standard
deviation of the risk premium? (Do not round intermediate
calculations. Enter your answer as a percent rounded to 2 decimal
places.)
26.22 % is
WRONG
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns, rA
Stock B's Returns, rB
2011
- 21.60%
- 15.00%
2012
24.00
23.50
2013
16.50
33.90
2014
- 1.50
- 7.70
2015
26.50
9.20
Calculate the average rate of return for stock A during the
period 2011 through 2015. Round your answer to two decimal
places.
%
Calculate the average rate of return for stock B during the period
2011 through 2015. Round your answer to two...
You have been given the following return information for a mutual fund, the market index, and...
You have been given the following return information for a
mutual fund, the market index, and the risk-free rate. You also
know that the return correlation between the fund and the market is
0.91.
Year
Fund
Market
Risk-Free
2011
–20.60
%
–39.50
%
1
%
2012
25.10
21.00
3
2013
13.90
13.90
2
2014
7.60
8.80
4
2015
–2.10
–5.20
2
Calculate Jensen’s alpha for the fund, as well as its
information ratio. (Do not round intermediate calculations.
Enter the...
Problem 2-14 Historical Returns: Expected and Required Rates of Return You have observed the following returns...
Problem 2-14
Historical Returns: Expected and Required Rates of Return
You have observed the following returns over time:
Year
Stock X
Stock Y
Market
2011
16%
12%
13%
2012
19
7
10
2013
-15
-2
-14
2014
4
1
1
2015
24
9
17
Assume that the risk-free rate is 4% and the market risk premium
is 7%. Do not round intermediate calculations.
What is the beta of Stock X? Round your answer to two decimal
places.
What is...
You have been given the following return information for a mutual fund, the market index, and...
You have been given the following return information for a
mutual fund, the market index, and the risk-free rate. You also
know that the return correlation between the fund and the market is
0.97.
Year
Fund
Market
Risk-Free
2011
–21.2
%
–40.5
%
2
%
2012
25.1
21.1
4
2013
14.0
14.2
2
2014
6.2
8.8
4
2015
–2.16
–5.2
3
What are the Sharpe and Treynor ratios for the fund? (Do
not round intermediate calculations. Round your answers to...
You have been given the following return information for a mutual fund, the market index, and...
You have been given the following return information for a
mutual fund, the market index, and the risk-free rate. You also
know that the return correlation between the fund and the market is
0.97.
Year
Fund
Market
Risk-Free
2011
–22.4
%
–42.5
%
3
%
2012
25.1
21.3
5
2013
14.2
14.8
2
2014
6.6
8.8
6
2015
–2.28
–5.2
3
What are the Sharpe and Treynor ratios for the fund? (Do
not round intermediate calculations. Round your answers to...
You have been given the following return information for a mutual fund, the market index, and...
You have been given the following return information for a
mutual fund, the market index, and the risk-free rate. You also
know that the return correlation between the fund and the market is
0.97.
Year
Fund
Market
Risk-Free
2011
–15.06
%
–26.5
%
3
%
2012
25.1
19.7
5
2013
12.6
10.0
2
2014
6.6
7.6
4
2015
–1.32
–2.2
3
What are the Sharpe and Treynor ratios for the fund? (Do
not round intermediate calculations. Round your answers to...
You have been given the following return information for a mutual fund, the market index, and...
You have been given the following return information for a
mutual fund, the market index, and the risk-free rate. You also
know that the return correlation between the fund and the market is
0.97. Year Fund Market Risk-Free 2011 –23.0 % –43.5 % 3 % 2012 25.1
21.4 5 2013 14.3 15.1 2 2014 6.8 8.8 6 2015 –2.34 –5.2 2 What are
the Sharpe and Treynor ratios for the fund? (Do not round
intermediate calculations. Round your answers to...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 59 seconds ago
asked 1 minute ago
asked 18 minutes ago
asked 24 minutes ago
asked 27 minutes ago
asked 28 minutes ago
asked 38 minutes ago
asked 46 minutes ago
asked 53 minutes ago
asked 56 minutes ago
asked 58 minutes ago
asked 1 hour ago