Consider the following annual returns of Molson Coors and International Paper:    MolsonCoors International Paper Year 1   21.8 %   5.6 % Year 2 − 9.5     −18.6   Year 3   42.0     −0.4   Year 4 − 9.1     27.7   Year 5   17.3     −12.2     Compute each stock’s average return, standard deviation, and coefficient of variation.

please show steps in excel

The following are the​ end-of-month prices for both the Standard​ & Poor's 500 Index and​ Nike's common stock. a. Using the data in the popup​ window​, calculate the​ holding-period returns for each of the months. b. Calculate the average monthly return and the standard deviation for both the​ S&P 500 and Nike. c. Develop a graph that shows the relationship between the Nike stock returns and the​ S&P 500 Index.​ (Show the Nike returns on the vertical axis and the​ S&P 500 Index returns on the horizontal​ axis.) d. From your​ graph, describe the nature of the relationship between Nike stock returns and the returns for the​ S&P 500 Index.

6. The last four years of returns for a stock are as follows: Year Return 2 28.5% 1 - 4.2% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? a. What is the average annual return? The average return is b. What is the variance of the stock's returns? The variance of the returns is 3 12.3% The standard deviation is %. (Round to two decimal places.) 3.6% c. What is the standard deviation of the stock's returns? (Round to five decimal places.) %. (Round to two decimal places.)

Estimate a stock's beta (i.e., the sensitivity of the stock's returns to the returns on the market) based on the following information about the changes in stock returns and market returns over the course of three months: Month 1: Stock -2.5%, Market -2%. Month 2: Stock -.5%, Market -.25%. Month 3: Stock +1.5%, Market +1.25%.

The following table shows estimates of the risk of two well-known Canadian stocks:   Standard Deviation (%) R2raise to the power of 2 Beta Standard Error of Beta Sun Life Financial 25.7 0.19 0.93 0.12 Suncor Energy 26.5 0.02 0.70 0.27 What proportion of each stock’s risk was market risk, and what proportion was specific risk? What is the variance of the returns for Sun Life Financial stock? What is the specific variance? What is the confidence interval on Suncor’s beta? If the CAPM is correct, what is the expected return on Sun Life? Assume a risk-free interest rate of 4% and an expected market return of 14%. Suppose that next year, the market provides a 14% return. Knowing this, what return would you expect from Sun Life?

The last four years of returns for a stock are as shown here: a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 4 Return +3.51% 1 - 4.17% 2 +27.82% 3 + 11.88% X

Here are the returns on two stocks. January February March April May June July August Digital Cheese +14 -4 +6 +8 -5 +4 -3 -9 Executive Fruit +8 +2 +5 +12 +3 +6 w At t -4 -3 Required: a-1. Calculate the variance and standard deviation of each stock. a-2. Which stock is riskier if held on its own? 4 b. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks. c. Is the variance more or less than halfway between the variance of the two individual stocks?

Cullumber Inc. is planning to expand operations into South America in 8 years. The first three years, Cullumber will spend on feasibility and marketing studies. Once those studies are complete, Cullumber plans to invest $198000 per year for the remaining five years. What amount will Cullumber have at the end of the eight-year period for the expansion assuming a 11% interest rate? ○ $1431104 $990000 ○ $2348167 ○ $1233104

Suppose that the index model for two Canadian stocks HD and ML is estimated with the following results: RHD =-0.03+2.10RM+eHD R-squared =0.7 RML =0.06+1.60RM+eML R-squared =0.6 σM =0.15 where M is S&P/TSX Comp Index and RX is the excess return of stock X.   What is the standard deviation of each stock? (Hint: βi = (ρiM σi) / σM.)