In terms of the stock valuation as indicated by the Cyclically Adjusted Price-Earnings Ratio (CAPE), which of the following years does NOT represent a peak in the U.S. stock market? Group of answer choices a1929. b1901. c 2000. d 1981.
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In terms of the stock valuation as indicated by the Cyclically Adjusted Price-Earnings Ratio (CAPE), which of the following years does NOT represent a peak in the U.S. stock market? Group of answer choices
a1929.
b1901.
c 2000.
d 1981.
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- What is the standard deviation of the returns on a stock given the following information? State of Economy Probability of State of Economy Rate of Return if State Occurs Boom .08 .171 Normal .70 .076 Recession .22 .017Which one of the following categories has the widest frequency distribution of returns for the period 1926-2014? Multiple Choice Small-company stocks U.S. Treasury bills Long-term government bonds Inflation Large-company stockConsider the following information on large-company stocks for a period of years. Arithmetic Mean Large-company stocks 14.9 % Inflation 4.8 a. What was the arithmetic average annual return on large-company stocks in nominal terms? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the arithmetic average annual return on large-company stocks in real terms? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- Assume these are the stock market and Treasury bill returns for a 5-year period in the attached image: A. What was the risk premium on common stock in each year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Risk Premium 2013 % 2014 % 2015 % 2016 % 2017 % b. What was the average risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)What is the standard deviation of Stock A returns given the information below about its returns across future states of nature? Enter return in decimal form, rounded to 4th digit, as in "0.1234"The ratio of the market price per share of common stock on a specific date to the annual earnings per share is referred to as the price-earnings ratio. Group of answer choices True False
- What is the standard deviation of Stock B returns given the information below about its returns across future states of nature? Enter return in decimal form, rounded to 4th digit, as in "0.1234"What are some comments that can be made on this? The stock market crash of 2020 is the largest index point plunge in U.S history. Starting March 9 2020, the Dow Jones Industrial Average index suffered one of three point drops. This is sufficient because stock market indexes are a measure of market sentiment. The most common stock indexes are the Dow Jones industrial average, S and P 500, and the Nasdaq stock market composite. The Dow Jones index is price averages while the s and p 500 and the nasdaq stock market composite are market capitalization weighted. When the Dow Jones drops 20.3% in a matter of days, this meant that there were negative market sentiment factors at play. At the time before this occurrence, the threat of the corona virus had investors worried. There would soon be a shutdown which would cause record unemployment and would significantly decrease purchasing power. This caused investors to move their capital into safer investments. In this case it was the bond…Given the following information, what is the standard deviation for VirtVaccine Inc.'s stock? VirtVaccine Inc. State of Economy Probability of State of Economy Rate of Return if State Occurs Normal 45% 12%Recession 55% -22%
- What is the standard deviation of the returns on a stock given the following information? Could you please show the work? State of Economy Probability of state of Economy Rate of return if state occurs Boom 0.3000 0.1500 Normal 0.6500 0.1200 Recession 0.0500 0.0600 Average 0.3333 0.1100When technical analysts say a stock has good “relative strength,” they mean:a. The ratio of the price of the stock to a market or industry index has trended upward.b. The recent trading volume in the stock has exceeded the normal trading volume.c. The total return on the stock has exceeded the total return on T-bills.d. The stock has performed well recently compared to its past performance.If this company’s stockturn rate was 3.5 last year, is the stockturn rate calculated in the previous question better or worse? Discuss. (AACSB: Written and Oral Communication; Reflective Thinking)
