Observed the following Corporation stock over the pa e years: -28.5 percent, 16 percent, 35 percent, 3.5 percent, and 22.5 percent. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) What was the standard deviation of the returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return Variance Standard deviation % %
Q: 2?The seller has agreed to let the buyer move into the property two days prior to the date of…
A: Homeowners Insurance policy is specific to the current home that is insured. Every detail of the…
Q: A firm had year end 2004 and 2005 retained earnings balances of $670,000 and $560,000, respectively.…
A: Given Dividend paid in 2005 is $10,000 Retained earnings at the end of year 2004 is $670,000…
Q: The risk-free rate is 3 percent, the expected return on the PSEi is 13 percent, and its standard…
A: Here, Risk Free Rate is 3% Expected Return of Market is 13% Standard Deviation of Market is 23%…
Q: Jace is trying to determine how to invest $1,234.56 that he inherited from his cousin Elijah. He…
A: Note: All the Given Options are incorrect, so we are solving the correct one for you as per the…
Q: State the concepts in your own words. 1. Privatization 2. Free Trade 3. Flexible Labor Market
A: Privatization: Privatization refers to the process by which a piece of property or a business is…
Q: Given the following data R=$1.00N100 F $1.00N90 lus5% If the interest parity ocondition is expected…
A: Given: Spot rate $1 = ¥100 Forward rate $1 = ¥90 US interest rate = 5%
Q: With respect to an investor's utility function expressed as: U = E(r) –Ao², which of the following…
A: Utility Function = Er-12Aσ2 where A is -4, 0 and 4
Q: Gas was 3.04 a gallon on Monday. On Wednesday, gas prices increased 6.5%. On Friday, prices…
A: The price of gas on Friday would be calculated as net change in gas price plus the original price
Q: 10. Simple-interest loan $1800 @ 8% for 12 months with a monthly payment of $156.60. After 8 months…
A: Simple Interest is calculated as: = Principal * Rate * Time Here, principal is the opening balance…
Q: A couple who wants to purchase a home with a price of $340,000 has $100,000 for a down payment. If…
A: Loan Amount (P)=340000- 100000=$240000 Rate of Interest (r)=6%=0.06 n=25 Years=300
Q: Laurel, Inc., has debt outstanding with a coupon rate of 5.8% and a yield to maturity of 6.8%. Its…
A: Effective after-tax cost of debt The interest paid on debt less any income tax savings owing to…
Q: Public Islamic Bank Bhd has excess fund and decided to invest in Malaysia Government Investment sue…
A: Face Value MYR 20,00,000.00 Issuance Date 07-04-2019 Maturity Date 07-04-2023 Coupon Rate…
Q: The difference in yield between a credit-risky bond and a credit-risk-free bond of similar maturity…
A: Yields are income from investments such as: B. Benefits from holding securities. Yields are usually…
Q: Compare the intarost earned by $8,000 for ive years at 8% simple interest with interest eamed by the…
A: In case of simple interest the interest amount is computed and payments are made only on the…
Q: b. Bank Islam Malaysia Bhd (BIMB) plan to invest in Malaysian Islamic Treasury Bills which has a…
A: Concept Treasury Bills are short term money market instruments.
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…
A: Market Price $ 500.00 Dividend in year 1 4 Growth Rate 9% Total number of Shares…
Q: NOT right for the buy-and-hold investment strategy?
A: Strategy refers to the plan which is followed by the managers to achieve the goals of an…
Q: An installment note payable for a principal amount of $48,000 at 6% interest requires Lawson Company…
A: Amortized Loan: Amortized loan is a type of loan in which the borrower would pay periodic payments…
Q: Q3. IEdeas signed a contract to lease a building at P60,000 a year with an annual increase of P1,000…
A: Starting lease payment is P60,000 Annual increase in lease payment is P1,000 Worth of money is 8%…
Q: The market risk premium (E[Rm]-Rf) is 6%. The risk-free rate (Rf ) is 2%. Asset X has beta equal to…
A: Here, Market Risk Premium is 6% Risk Free Rate is 2% Beta of Asset X is 0.8 Expected Return of Asset…
Q: Which one of the following is likely discouraging foreign direct investmen (FDI) in one country?…
A: A foreign direct investment (FDI) is the purchase of a stake in a company by a company or investor…
Q: Why is the strait of Hormuz important to Iran and how do they use the strait of hormuz?
A: Strategic management is the management of a company's resources to successfully achieve its goals…
Q: If $84,000 is invested in an annuity that earns 5.2%, compounded quarterly, what payments will it…
A: Investment (PV) = $84000 Interest rate = 5.2% Quarterly interest rate (r) = 5.2%/4 = 1.30% Period =…
Q: 1. 1. The average variance of financial assets on a market is 0.4% and the average covariance tween…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: You are a portfolio manager of a global equity fund of funds UITF. You decided to hold a portfolio…
A: Here, Proportion invested in S&P Index (Ws) is 80% Proportion invested in Blackrock Index (Wb)…
Q: Which of the following is matter if a U.S. parent firm plans to completely finance the establishment…
A: Retained earnings- are the cumulative profit of a firm that is retained after accounting for…
Q: The covariance of returns between MSFT and AAPL is 0.0044. The standard deviation of the return of…
A:
Q: İnternal transaction costs include administrative costs associated with coordinating economic…
A: Internal Transaction Cost is the Cost incurred on the exchange within the organization. In other…
Q: Suppose an annuity will pay $14,000 at the beginning of each year for the next 5 years. How much…
A: Annual payment (P) = $14,000 Interest rate (r) = 6.5% Period (n) = 5 Years
Q: A concrete hollow blocks (CHB) plant has an overhead cost of P150,000 per month. The material cost…
A: Break-even Point: The break-even point is that level of sales at which the operating income (EBIT)…
Q: (16. A 28.5-acre parcel of land in Orange County sells for $4,100 per acre. What is the documen- 16.…
A: The documentary stamp tax rate =0.7003% Deed amount = 28.5*4100=116850
Q: You wish to evaluate which of the two equity funds delivered a better risk adjusted return in terms…
A: Sharpe ratios is calculated as excess return over the risk free rate divided by the standard…
Q: 4. A child has a savings account in which the same amount is deposited every year. The first payment…
A: Given: Future Value =20,000 Number of payments from 0 to 18 years = 19 Interest rate = 2.3% Tax at…
Q: 1. Juanita inherits $10,000 and invests it for 30 years at a “net” 9% return. How much money will…
A: Investment (PV) = $10,000 Interest rate (r) = 9% Period (n) = 30 Years
Q: Cross-Ocean Boats Ltd. is in the 30% tax bracket. It is interested in determining the minimum return…
A: Given: Tax rate 30% Particulars Debt Common shares Preferred shares Coupon rate/Dividend…
Q: On January 2, 2021, an Australian Copper Exploration Company was investigating the feasibility of…
A: Net present value is the difference between the present value of cash inflows and present value of…
Q: You want to save an amount of P100,000 at the end of 10 years. You are given 8% interest compounded…
A: Solved using Financial Calculator FV = 100,000 I/Y = 8/4% = 2% per quarter compound N= 10 *4 = 40…
Q: A stock price is currently $51. It is assumed that at the end of six months it will be either $30 or…
A: Binomial model is one of the methods of option pricing. It calculates the option price by…
Q: A $7000, 6.11% bond with semi-annual coupons redeemable at par was purchased 5 years before…
A: Par value = $7000 Coupon rate = 6.11% Semi annual coupon amount = 7000*0.0611/2 = $213.85 Years to…
Q: A $3,000 bond with a 2.5% coupon compounded semi-annually is currently priced to yield 9% with 18…
A: The yield to maturity of a bond is the total rate of return gained after all interest payments have…
Q: Arguments against a robust financial market being the foundation of stable economic growth and…
A: As the name implies, financial markets are a type of marketplace where you may sell and purchase…
Q: Compare the intarest earned by $8,000 for five years at 8% simpile interest with interest eamed by…
A: Simple interest is different from compound interest. In case of compound interest the interest is…
Q: _____________ are used to measure the speed in which various accounts are converted into sales or…
A: Ratio analysis is a financial technique to measure the financial position of the company. It is the…
Q: If the investment rate is 12%, the borrowing rate is 15%, and the MARR is 14%, what is the rate of…
A: Rate of return of the project is calculated using IRR. IRR is the rate at which Present Value of…
Q: how to interpret the historical data of €/$ and form a view regarding current and future market…
A: In a broad sense, historical data is information gathered about previous events and situations…
Q: If the interest rate is zero, the future value interest factor equals.
A: Time value of money (TVM) is used to measure the value of money at different point of time in the…
Q: value of the option free bond t
A: A bond call option refers to the type of contract in which the holder gives the right to buy a bond…
Q: beta and expected return
A: : Beta refers to the measurement of stock movement in relation to the overall market. A beta greater…
Q: A $3600, 6.9% bond with semi-annual coupons redeemable at par in 5 years was purchased at 100.1.…
A: Par value (F) = $3600 Coupon rate = 6.9% Annual coupon amount (C) = 3600*0.069 = $248.40 Years to…
Q: A design studio received a loan of $260,000 at 3.6% compounded monthly to use as working capital for…
A: Loan (L) = $260000 r = 3.6% per annum = 0.3% per month n = Number of payments Monthly payment (M) =…
Step by step
Solved in 3 steps
- An analyst gathered daily stock returns for Feburary 1 through March 31, calculated the Fama-French factors for each day in the sample (SMBt and HMLt), and estimated the Fama-French regression model shown in Equation 6-21. The estimated coefficients were ai = 0, bi = 1.2, ci = 0.4, and di = 1.3. On April 1, the market return was 10%, the return on the SMB portfolio (rSMB) was 3.2%, and the return on the HML portfolio (rHML) was 4.8%. Using the estimated model, what was the stocks predicted return for April 1?You’ve observed the following returns on SkyNet Data Corporation’s stock over the past five years: 11 percent, –10 percent, 19 percent, 18 percent, and 10 percent. a. What was the arithmetic average return on the company's stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b-1. What was the variance of the company's returns over this period? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What was the standard deviation of the company’s returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)You’ve observed the following returns on Pine Computer’s stock over the past five years: 13 percent, −13 percent, 20 percent, 25 percent, and 10 percent. a. What was the arithmetic average return on the company’s stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b-1. What was the variance of the company’s returns over this period? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What was the standard deviation of the company’s returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Average return % b-1. Variance b-2. Standard deviation %
- You’ve observed the following returns on Yamauchi Corporation’s stock over the past five years: –29.4 percent, 16.6 percent, 36.2 percent, 3.8 percent, and 22.8 percent. a. What was the arithmetic average return on the stock over this five-year period? (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 variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) c. What was the standard deviation of the returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 15 percent, –6 percent, 18 percent, 14 percent, and 10 percent. a. What was the arithmetic average return on the company's stock over this five-year period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Average return % b-1 What was the variance of the company's stock returns over this period? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Variance b-2 What was the standard deviation of the company's stock returns over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation %You’ve observed the following returns on Pine Computer’s stock over the past five years: −26.4 percent, 14.6 percent, 32.2 percent, 2.8 percent, and 21.8 percent. What was the arithmetic average return on the stock over this five-year period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. What was the variance of the returns over this period? Note: Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616. What was the standard deviation of the returns over this period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
- You’ve observed the following returns on Yamauchi Corporation’s stock over the past five years: –29.7 percent, 16.8 percent, 36.6 percent, 3.9 percent, and 22.9 percent. a. What was the arithmetic average return on the stock over this five-year period? b. What was the variance of the returns over this period? c. What was the standard deviation of the returns over this period?You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 16 percent, –5 percent, 19 percent, 13 percent, and 10 percent. a. What was the arithmetic average return on the company’s stock over this five-year period? b-1. What was the variance of the company’s returns over this period? b-2. What was the standard deviation of the company’s returns over this period?You’ve observed the following returns on Pine Computer’s stock over the past five years: −29.1 percent, 16.4 percent, 35.8 percent, 3.7 percent, and 22.7 percent. What was the arithmetic average return on the stock over this five-year period? What was the variance of the returns over this period? What was the standard deviation of the returns over this period?
- The rates of return on Cherry Jalopies, Inc., stock over the last five years were 17 percent, 11 percent, −1 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company’s stock were 16 percent, 22 percent, −1 percent, 5 percent, and 12 percent. Calculate the variances and the standard deviations for Cherry and Straw. (Do not round intermediate calculations. Enter your variance as a decimal rounded to 5 decimal places. Enter your standard deviation as a percent rounded to 2 decimal places.)Over the past five years, a stock returned -2.73 percent, 14.66 percent, 15.19 percent, 3.43 percent, and 5.49 percent, respectively. What is the variance (as a decimal fraction) of these returns? Carry intermediate calculations to six decimals. Answer to four decimals. Your answer should look something like 0.0123, or 0.0024.You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 15 percent, –6 percent, 18 percent, 14 percent, and 10 percent. calculate the mean, variance and standard deviation.