Given the returns over the 1988-2013 period, and the arithmetic mean return and volatility you calculated in the first quiz (which you could also recalculate now if necessary), what has been the ‘quick-and-dirty’ risk-adjusted return of these markets? Year Developed 1988 24.0% 1989 17.2% 1990 -16.5% 1991 19.0% 1992 -4.7% 1993 23.1% 1994 5.6% 1995 21.3% 1996 14.0% 1997 16.2% 1998 24.8% 1999 25.3% 2000 -12.9% 2001 -16.5% 2002 -19.5% 2003 33.8% 2004 15.2% 2005 10.0% 2006 20.7% 2007 9.6% 2008 -40.3% 2009 30.8% 2010 12.3% 2011 -5.0% 2012 16.5% 2013 27.4% What are the correct answer from the options given below? 0.72 0.99 0.54 0.21 0.89 help me with this.

Given the returns over the 1988-2013 period, and the arithmetic mean return and volatility you calculated in the first quiz (which you could also recalculate now if necessary), what has been the ‘quick-and-dirty’ risk-adjusted return of these markets? Year Developed 1988 24.0% 1989 17.2% 1990 -16.5% 1991 19.0% 1992 -4.7% 1993 23.1% 1994 5.6% 1995 21.3% 1996 14.0% 1997 16.2% 1998 24.8% 1999 25.3% 2000 -12.9% 2001 -16.5% 2002 -19.5% 2003 33.8% 2004 15.2% 2005 10.0% 2006 20.7% 2007 9.6% 2008 -40.3% 2009 30.8% 2010 12.3% 2011 -5.0% 2012 16.5% 2013 27.4% What are the correct answer from the options given below? 0.72 0.99 0.54 0.21 0.89 help me with this.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter10: Valuing Early-stage Ventures

Section: Chapter Questions

Problem 16DQ

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Given the returns over the 1988-2013 period, and the arithmetic mean return and volatility you calculated in the first quiz (which you could also recalculate now if necessary), what has been the ‘quick-and-dirty’ risk-adjusted return 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% what are the correct answer based on the option given? 0.51 0.29 0.76 0.98 0.12 help me with this
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?
Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (%) T-Bill Return (%) 2013 36.00 0.22 2014 15.40 0.22 2015 −5.20 0.22 2016 17.00 0.09 2017 26.00 0.11 Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.)
Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (%) T-Bill Return (%) 2016 13.0 0.2 2017 21.0 0.8 2018 -6.2 1.8 2019 29.8 2.1 2020 20.6 0.4 Required: What was the risk premium on common stock in each year? What was the average risk premium? What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.)
Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (%) T-Bill Return (%) 2016 13.0 0.2 2017 21.0 0.8 2018 -6.2 1.8 2019 29.8 2.1 2020 20.6 0.4 Required: What was the risk premium on common stock in each year? What was the average risk premium? What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.)-- expressed in % (NOTE: 11.31% is incorrect)
You are analyzing a Time Series of historic market information and found the following information for a particular investment security: the Rate of Return in 2012 was -6.72%; was 18.22% in 2013; was 7.75% in 2014; was 11.45% in 2015; was 4.94% in 2016; and was 18.11% in 2017. What is the arithmetic average rate of return? Show your answer as a percentage rounded to two places (12.34% for example). Group of answer choices 7.64% 8.96% 8.14% 7.24% None of the above
Based on the following information, what is the standard deviation of returns? State of Economy Probability of Stateof Economy Rate of Return ifState Occurs Recession .28 − .096 Normal .41 .111 Boom .31 .221
Assume these were the inflation rates and U.S. stock market and Treasury bill returns between 1929 and 1933: Year Inflation(%) Stock Market Return(%) T-Bill Return(%) 1929 0.5 –13.2 6.1 1930 –5.5 –30.7 2.9 1931 –9.3 –47.6 1.5 1932 –13.2 –8.2 0.8 1933 0.9 64.2 0.6 What was the real return on the stock market in each year? What was the average real return? What was the risk premium in each year? What was the average risk premium?
Historical data for the S & P 500 Index show an average excess return over Treasury bills of about 8.5 % with standard deviation of about 20 %. To the extent that these averages approximate investor expectations for the sample period, what must have been the co-efficient of risk aversion of the average investor? If the co-efficient of risk aversion were 3.5, what risk premium would have been consistent with the market’s historical standard deviation?
Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years has averaged roughly 8% more than the Treasury bill return and that the S&P 500 standard deviation has been about 38% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 5%. Calculate the expected return and variance of portfolios invested in T-bills and the S&P 500 index with weights as shown below. (Enter your answers as decimals rounded to 4 places. Leave no cells blank - be certain to enter "0" wherever required.) WBills: WIndex: Expected Return: Variance: 0.0 1.0 0.1300 0.1444 Example 0.2 0.8 0.4 0.6 0.6 0.4 0.8 0.2 1.0 0.0
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.)…
Assume these are the stock market and Treasury bill returns for a 5-year period: Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.)

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Year	Developed
1988	24.0%
1989	17.2%
1990	-16.5%
1991	19.0%
1992	-4.7%
1993	23.1%
1994	5.6%
1995	21.3%
1996	14.0%
1997	16.2%
1998	24.8%
1999	25.3%
2000	-12.9%
2001	-16.5%
2002	-19.5%
2003	33.8%
2004	15.2%
2005	10.0%
2006	20.7%
2007	9.6%
2008	-40.3%
2009	30.8%
2010	12.3%
2011	-5.0%
2012	16.5%
2013	27.4%