Consider the following realized annual returns for the Index HG200: Year End Index Realized Return 2000 23.6% 2001 24.7% 2002 30.5% 2003 9.0% 2004 -2.0% 2005 -17.3% 2006 -24.3% 2007 32.2% 2008 4.4% 2009 7.4% Compute: 1) average annual return on the Index from 2000 to 2009; 2) standard deviation of the returns on the Index from 2000 to 2009.
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- what has been the standard deviation of annual returns (volatility) of these markets? Year Emerging 1988 40.4% 1989 65.0% 1990 -10.6% 1991 59.9% 1992 11.4% 1993 74.8% 1994 -7.3% 1995 -5.2% 1996 6.0% 1997 -11.6% 1998 -25.3% 1999 66.4% 2000 -30.6% 2001 -2.4% 2002 -6.0% 2003 56.3% 2004 26.0% 2005 34.5% 2006 32.6% 2007 39.8% 2008 -53.2% 2009 79.0% 2010 19.2% 2011 -18.2% 2012 18.6% 2013 -2.3% the standard deviation of annual returns (volatility) of these markets?The average annual return on the S&P 500 Index from 1986 to 1995 was10.75 percent. The average annual T-bill yield during the same period was 3.85 percent. What was the market risk premium during these ten years? (Round your answer to 2 decimal places.) Average market risk premium %Please include the excel formula You’ve observed the following returns on Pine Computer’s stock over the past five years: 8 percent, −12 percent, 14 percent, 21 percent, and 16 percent. Suppose the average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 3.9 percent. What was the average real return on the company’s stock? What was the average nominal risk premium on the company’s stock over this period? Input area: Year Returns 1 8% 2 -12% 3 14% 4 21% 5 16% Average inflation 3.10% Average T-bill rate 3.90% (Use cells A6 to B13 from the given information to complete this question. You must use the built-in Excel function to answer this question. Make sure to use the “sample” Excel formula.)…
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