Download E2 and develop a model for the S&P 500 predicting the Dow Jones Industrial Average. What is the value of bo? O 9,658.4 O 2.438 O 1,105.1 O 0.8373 O 0.3948
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| Date | DJIA | S&P 500 |
| January 6 | 12,360 | 1,278 |
| January 13 | 12,422 | 1,289 |
| January 20 | 12,720 | 1,287 |
| January 27 | 12,660 | 1,234 |
| February 3 | 12,862 | 1,267 |
| February 10 | 12,801 | 1,243 |
| February 17 | 12,950 | 1,262 |
| February 24 | 12,983 | 1,313 |
| March 2 | 12,978 | 1,255 |
| March 9 | 12,922 | 1,371 |
| March 16 | 13,233 | 1,404 |
| March 23 | 13,081 | 1,397 |
| March 30 | 13,212 | 1,408 |
| April 5 | 13,060 | 1,398 |
| April 13 | 12,850 | 1,370 |
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- Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) = $5.10, and σA = $3.63; E(EPSB) = $4.20, and σB = $2.94. Do not round intermediate calculations. Round your answer to the nearest cent. Probability 0.1 0.2 0.4 0.2 0.1 Firm A: EPSA ($1.61) $1.80 $5.10 $8.40 $11.81 Firm B: EPSB (1.20) 1.30 4.20 7.10 9.60 Firm C: EPSC (2.59) 1.35 5.10 8.85 12.79 E(EPSC): $ You are given that σc = $4.12. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Do not round intermediate calculations. Round your answers to two decimal places. CV A B C The most risky firm is .The table shows the average returns and betas for the five ETFs, S&P 500, and Treasury. VONF IJT PDP FTA FNY S&P 500 TreasuryAnnualize mean 0.07148 0.11941 0.09613 0.07483 0.10233 0.09637 0.02541Beta 1.01106 1.11377 1.01507 1.02652 1.09928 1.00000 0.00000 Create a SML with the S&P 500 index's and the Treasury's average returns and betas. Determine whether the ETFs have return and beta combinations above or below the line you generated. Explain the arbitrage strategy you would form with one of the ETFs, index, or Treasury.The SSO ETF is a X2 power share on the S&P500. What would you expect the correlation to be between the returns of SSO and the returns of the S&P500
- Estimate the beta value of your company using CAPM model and check the adequacy of the model (Current US 3 month Treasury bill is 0.03%) Clarity as you have asked: THE RETURNS ARE NOT IN PERCENTAGE. They are just as they are S&P index Iron Inc -2.47567 1.5888 3.433569 1.747917 0.701043 1.115125 0.96953 2.20568 0.409803 0.37909 0.451845 0.842537 -0.01463 0.345743 -0.52576 -0.17227 1.072171 0.201313 0.222197 0.574076 0.759145 1.11301 1.318305 0.592719 -1.41573 -0.19641 0.220289 0.365459 0.137568 0.588253 0.848872 0.389854 -0.78469 0.527053 -0.14562 0.469088 1.554924 1.180992 0.859738 0.977212 0.089864 -1.58603 0.67762 0.901378 0.470848 -0.1895 -0.22245 -0.35259 -0.93571 -0.54436 0.067626 -0.0821 0.070904 -0.35606 1.289025 -1.62177 0.302398 0.139707 -0.26516 -1.5904 1.087871 -0.42531 0.149878…Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company $1 Discount Store Everything $5 Forecast return 12% 11% Standard deviation of returns 8% 10% Beta 1.5 1.0 What would be the fair return for $1 Discount Store according to the capital asset pricing model (CAPM)? Enter your answer as a decimal.Show the monthly return of the company and S&P 500 in the same graph. What is your interruption interpretation of the change of return of the company comparing with the market index? Calculate the monthly standard deviation and return for both the company and S&P 500. What is your interruption of the risk and return of the company comparing with the market index? S&P 500 last 6 months : Date Open High Low Close* Adj. close** Volume 01 Apr 2022 4,540.32 4,593.45 4,381.34 4,392.59 4,392.59 37,024,560,000 01 Mar 2022 4,363.14 4,637.30 4,157.87 4,530.41 4,530.41 100,978,320,000 01 Feb 2022 4,519.57 4,595.31 4,114.65 4,373.94 4,373.94 73,167,790,000 01 Jan 2022 4,778.14 4,818.62 4,222.62 4,515.55 4,515.55 73,279,440,000 01 Dec 2021 4,602.82 4,808.93 4,495.12 4,766.18 4,766.18 68,699,830,000…
- Suppose S(NZD/USD) = 1.5000 and S(MYR/USD) = 4.4000. What is the cross rate S(MYR/NZD)? Choose the closest answer to your own calculations. a. 2.9333 b. 0.3409 c. 6.6000 d. 0.1515Dhofar Energy Services has a Beta = 1.68 The risk-free rate on a treasury bill is currently 4.4% and the cost of equity has 20.70%. What is the market return? Select one: a. 0.1410 b. 1.0970 c. All the given choices are not correct d. 0.1654 e. 0.2369Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company $1 Discount Store Everything $5 Actual return 12% 11% Standard deviation of returns 8% 10% Beta 1.5 1.0 What would be the required return for $1 Discount Store according to the capital asset pricing model (CAPM)? Enter your answer as a decimal.
- 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…a. Given the following information, calculate the expected value for Firm C’s EPS. Datafor Firms A and B are as follows: E(EPSA) =$5.10, σA =$3.61, E(EPSB) =$4.20, and σB = $2.96. b. You are given that σC = $4.11. Discuss the relative riskiness of the three firms’ earnings.Mf2. 1. Consider the data in the following table for a hypothetical two-stock version of the Dow Jones Industrial Average. a) Calculate the percentage change in the index value. b) Suppose firm XYZ from part (a) were to split two for one during the period (price drops to $35 immediately after the split and the new final price is $30). Calculate the percentage change in the index value. c) If this was for S&P500-type index, what is the percentage change in the index value? Is it affected by the stock split of firm XYZ?
