Over a particular period, an asset had an average return of 5.8 percent and a standard deviation of 8.9 percent. What range of returns would you expect to see 68 percent of the time for this asset?
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Over a particular period, an asset had an average return of 5.8 percent and a standard deviation of 8.9 percent. |
What range of returns would you expect to see 68 percent of the time for this asset? |
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- Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 5.2 percent and the standard deviation was 10.6 percent. a. What is the probability that your return on this asset will be less than –9.7 percent in a given year? Use the NORMDIST function in Excel® to answer this question. b. What range of returns would you expect to see 95 percent of the time? c. What range of returns would you expect to see 99 percent of the time?Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 5.7 percent and the standard deviation was 18.3 percent. a. What is the probability that your return on this asset will be less than –4.1 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What range of returns would you expect to see 95 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What range of returns would you expect to see 99 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations…An asset has an average return of 11.45 percent and a standard deviation of 24.36 percent. What is the most you should expect to lose in any given year with a probability of 2.5 percent?
- Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 6.4 percent and the standard deviation was 12.4 percent. A. What range of returns would you expect to see 95 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) B. What range of returns would you expect to see 99 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)Suppose the average return on Asset A is 6.6 percent and the standard deviation is 8.6 percent and the average return and standard deviation on Asset B are 3.8 percent and 3.2 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel® to answer the following questions. a. What is the probability that in any given year, the return on Asset A will be greater than 11 percent? Less than 0 percent? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the probability that in any given year, the return on Asset B will be greater than 11 percent? Less than 0 percent? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. In a particular year, the return on Asset A was −4.25 percent. How likely is it that such a low return will recur at some point in the future? (Do…What range of returns should you expect to see with a 99 percent probability on an asset that has an average return of 10 percent and a standard deviation of 24 percent?
- An asset has an average return of 11.15 percent and a standard deviation of 22.89 percent. What is the most you should expect to earn in any given year with a probability of 16 percent? 11.74% 57.52% 34.04% 34.63% 23.19%(a) An asset has recorded the following closing prices over a period of 5 days: 100 (day 1), 105 (day 2), 103 (day 3), 110 (day 4), and 120 (day 5). Calculate: (i) the net return at the end of the 5-day period (ii) the log return at the end of the 5-day period (iii) the average log return over this 5-day period (b) Suppose the distribution for the above returns follows the normal distribution with a mean value of 5, and a standard deviation of 2. Given that the 5% quantile value is -1.645, what is the 5% 10 days value-at-risk for a portfolio of a value of £100,000? (c)Explain why bootstrapping is necessary when using the historical simulation method for value-at-risk and why it is not necessary when using the Monte Carlo simulation methodAn asset has an average return of 11.15 percent and a standard deviation of 23.91 percent. What is the most you should expect to earn in any given year with a probability of 2.5 percent? Multiple Choice 82.88% 70.93% 47.02% 35.06% 58.97%
- The data presented below represents the expected returns on a financial asset in different seasons of the year. Season of year Probability Returns Spring 40% 2% Summer 35% 6% Winter 25% 10% What is the expected return on the asset? ii) What is the standard deviation on the asset? What is the covariance of the asset?uppose the average return on Asset A is 7.1 percent and the standard deviation is 8.3 percent, and the average return and standard deviation on Asset B are 4.2 percent and 3.6 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel® to answer the following questions. a. What is the probability that in any given year, the return on Asset A will be greater than 12 percent? Less than 0 percent? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the probability that in any given year, the return on Asset B will be greater than 12 percent? Less than 0 percent? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. In a particular year, the return on Asset A was −4.38 percent. How likely is it that such a low return will recur at some point in the future? (Do not round…What is the approximate standard deviation of returns if over the past 4 years an investment returned 8.0%, -12.0%, -12.0%, and 15.0%?