1Daily Prices on these 4 stocks:2 DateMSFTINTC33/01/1126.7219.6619.888.4744/01/1126.8319.9419.918.7755/01/1126.7419.7520.158.9166/01/1127.5319.5920.328.6977/01/1127.3219.4820.348.83810/01/1126.9519.5120.179.19911/01/1126.8519.8520.258.361012/01/1127.2720.0920.498.391113/01/1126.9220.0820.458.261214/01/1127.0319.8820.578.21318/01/1127.3719.8820.588.11419/01/1127.1919.8120.27.931520/01/1127.0819.7620.158.021621/01/1126.7619.6320.117.541724/01/1127.1120.0320.547.681825/01/1127.1720.3220.97.481926/01/1127.4920.5120.787.492021 What is the covariance matrix between daily returns MFST, INTC, CSCO and AMD?CSCOAMD

Variance covariance matrix : It is a square matrix where the diagonal elements represent the values…

Daily Prices on these 4 stocks: MSFT INTC 3/01/11 26.72 19.66 19.88 8.47 4/01/11 26.83 19.94 19.91 8.77 5/01/11 26.74 19.75 20.15 8.91 6/01/11 27.53 19.59 20.32 8.69 7/01/11 27.32 19.48 20.34 8.83 10/01/11 26.95 19.51 20.17 9.19 11/01/11 26.85 19.85 20.25 8.36 12/01/11 27.27 20.09 20.49 8.39 13/01/11 26.92 20.08 20.45 8.26 14/01/11 27.03 19.88 20.57 8.2 18/01/11 27.37 19.88 20.58 8.1 19/01/11 27.19 19.81 20.2 7.93 20/01/11 27.08 19.76 20.15 8.02 21/01/11 26.76 19.63 20.11 7.54 24/01/11 27.11 20.03 20.54 7.68 25/01/11 27.17 20.32 20.9 7.48 26/01/11 27.49 20.51 20.78 7.49 What is the covariance matrix between daily returns MFST, INTC, CSCO and AMD? Date CSCO AMD

Daily Prices on these 4 stocks: MSFT INTC 3/01/11 26.72 19.66 19.88 8.47 4/01/11 26.83 19.94 19.91 8.77 5/01/11 26.74 19.75 20.15 8.91 6/01/11 27.53 19.59 20.32 8.69 7/01/11 27.32 19.48 20.34 8.83 10/01/11 26.95 19.51 20.17 9.19 11/01/11 26.85 19.85 20.25 8.36 12/01/11 27.27 20.09 20.49 8.39 13/01/11 26.92 20.08 20.45 8.26 14/01/11 27.03 19.88 20.57 8.2 18/01/11 27.37 19.88 20.58 8.1 19/01/11 27.19 19.81 20.2 7.93 20/01/11 27.08 19.76 20.15 8.02 21/01/11 26.76 19.63 20.11 7.54 24/01/11 27.11 20.03 20.54 7.68 25/01/11 27.17 20.32 20.9 7.48 26/01/11 27.49 20.51 20.78 7.49 What is the covariance matrix between daily returns MFST, INTC, CSCO and AMD? Date CSCO AMD

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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What is the CAPM required return for Stock Z, in decimal form? Round your answer to 4 decimal places (example: if your answer is .13579, you should enter .1358). Margin of error for correct responses: +/- .0005. expected return (implied by market price) Beta Stock Z 9.7% 1.43 MRP 6% ? T-bonds 5% ?
Consider the following three stocks: Stock Price Number of shares outstanding Stock A $ 40 200 Stock B $ 70 500 Stock C $ 10 600 Assume at these prices that the value-weighted index constructed with the three stocks is 490. What would the index be if stock B is split 2 for 1 and stock C 4 for 1? A) 265 B) 430 C) 355 D) 490 E) 1000Please Provide Justification
A4 5c Consider the following information on three stocks in four possible future states of the economy: State of economy Probability of state of economy Stock A Stock B Stock C Boom 0.3 0.35 0.45 0.38 Good 0.3 0.15 0.20 0.12 Poor 0.3 0.05 –0.10 –0.05 Bust 0.1 0.00 –0.30 –0.10 stock A: State of economy Probability Rate of return Average (a) (b) (c) (d = b × c)(d = b × c) Boom 0.3 0.35 0.105 Good 0.3 0.15 0.045 Poor 0.3 0.05 0.015 Bust 0.1 0 0 Expected rate of return 0.165 stock B: State of economy Probability Rate of return Average (a) (b) (c) (d = b × c)(d = b × c) Boom 0.3 0.45 0.135 Good 0.3 0.2 0.06 Poor 0.3 -0.1 -0.03 Bust 0.1 -0.3 -0.03 Expected rate of return 0.135 Stock C: State of economy Probability Rate of return Average (a) (b) (c) (d = b × c)(d = b…
On a particular date, FedEx has a stock price of $88.24 and an EPS of $7.36. Its competitor, UPS, had an EPS of $0.30. What would be the expected price of UPS stock on this date, if estimated using the method of comparables? Question content area bottom Part 1 A.$5.40 B. $7.19 C.$8.00 D.$3.60
If Stock I is correctly priced right now, its Beta must be ______ . Round your answer to 2 decimal places (example: if your answer is 1.2357, you should enter 1.24). Margin of error for correct responses: +/- .02. expected return (implied by market price) Beta Stock I 12.5% ?? S&P500 11% T-bonds 4%
Use the following information: Stock A B Good state 10% 14% Bad state 2% -2% Assume there is 60% probability that the good state occurs and 40% chance the bad state occurs. What is the standard deviation of stock A? (Please use 5 decimal places, this should be written in percentage, so an answer of 23.143% should be written as .23143)
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9 Consider the data for 3 stocks T=0. T=1 Price. Shares outst. Price A. 10. 200. 20 B. 20. 500. 20 C. 30. 600. 20 What is the single period return on the price weighted index constructed from the three stocks if stocks A and B were to split 2 for 1 and 4 for 1 respectively after period 0? Using a divisor of 3 for the pre split calculation A -12.50% B -13.33% C 0.00% D -10.00%
What is the reward-to-risk ratio for Stock X, in decimal form? Round your answer to 4 decimal places (example: if your answer is .03579, you should enter .0358). Margin of error for correct responses: +/- .0005. expected return (implied by market price) Beta Stock X 9.6% 1.46 S&P500 12% ? T-bills 4% ?
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Q2 - Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7Stock X 4% -2% 5% -1% 10% 7% 12%Stock Y -3% 7% 4% 2% 2% 8% -3% Consider a portfolio of 10% stock X and 90% stock Y. What is the mean of portfolio returns? Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
You have the following information: Stock Shares Outstanding BOY Price EOY Price L 3,000 $ 15 $ 28 K 57,000 $ 31 $ 35 You want the beginning price-weighted index of these two stocks to be 500. Given this, what is the ending index value? Multiple Choice A. 408.33 B. 487.08 C. 511.19 D. 576.09 E. 612.24

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