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S&P 500 Apple stock Year index returns returns (market) 0.25 2014 0.23 2015 0.12 -0.14 2016 0.08 0.07 2017 -0.15 -0.12 2018 -0.18 -0.1 2019 0.18 0.19 2020 0.36 0.3

S&P 500 Apple stock Year index returns returns (market) 0.25 2014 0.23 2015 0.12 -0.14 2016 0.08 0.07 2017 -0.15 -0.12 2018 -0.18 -0.1 2019 0.18 0.19 2020 0.36 0.3

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 14PPS
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The following data are used to answer questions 11 to 15. Based on the following data of Apple stock traded on the NYSE and the market benchmark S&P 500: Apple stock Year S&P 500 index returns returns (market) 0.25 2014 0.23 2015 0.12 -0.14 2016 0.08 0.07 2017 -0.15 -0.12 2018 -0.18 -0.1 2019 0.18 0.19 2020 0.36 0.3 Risk-free rate: 0.03 11. Compute the return of the S&P500 (market) and the SAMPLE standard deviation of the S&P500 returns on the basis of historical returns. a. E(r) = 0.0642 and o(r) = 0.1864 b. E(t) = 0.1214 and o(1) = 0.1476 c. E(r) = 0.1014 and o(r) = 0.1611 d. E(1) = 0.0900 and o(r) = 0.1532 e. E(t) = 0.1214 and o(r) = 0.1274 (CHOOSE THE CLOSEST ANSWER) 12. Compute the return of Apple stock and the SAMPLE standard deviation of the stock Apple returns on the basis of historical returns. a. E(t) = 0.1214 and o(r) = 0.1476 b. E(r) = 0.0871 and o(r) = 0.1921 c. E(r) = 0.1214 and o(r) = 0.1274 d. E(r) = 0.0914 and o(r) = 0.1966 e. E(r) = 0.1014 and o(r) = 0.1611 (CHOOSE THE CLOSEST ANSWER) 13. Compute the correlation of the market and Apple stock returns. a. p= 0.7905 b. p= 0.8333 C. p= 0.8930 d. p= 0.9326 e. p= 0.9236 (CHOOSE THE CLOSEST ANSWER)
Transcribed Image Text:The following data are used to answer questions 11 to 15. Based on the following data of Apple stock traded on the NYSE and the market benchmark S&P 500: Apple stock Year S&P 500 index returns returns (market) 0.25 2014 0.23 2015 0.12 -0.14 2016 0.08 0.07 2017 -0.15 -0.12 2018 -0.18 -0.1 2019 0.18 0.19 2020 0.36 0.3 Risk-free rate: 0.03 11. Compute the return of the S&P500 (market) and the SAMPLE standard deviation of the S&P500 returns on the basis of historical returns. a. E(r) = 0.0642 and o(r) = 0.1864 b. E(t) = 0.1214 and o(1) = 0.1476 c. E(r) = 0.1014 and o(r) = 0.1611 d. E(1) = 0.0900 and o(r) = 0.1532 e. E(t) = 0.1214 and o(r) = 0.1274 (CHOOSE THE CLOSEST ANSWER) 12. Compute the return of Apple stock and the SAMPLE standard deviation of the stock Apple returns on the basis of historical returns. a. E(t) = 0.1214 and o(r) = 0.1476 b. E(r) = 0.0871 and o(r) = 0.1921 c. E(r) = 0.1214 and o(r) = 0.1274 d. E(r) = 0.0914 and o(r) = 0.1966 e. E(r) = 0.1014 and o(r) = 0.1611 (CHOOSE THE CLOSEST ANSWER) 13. Compute the correlation of the market and Apple stock returns. a. p= 0.7905 b. p= 0.8333 C. p= 0.8930 d. p= 0.9326 e. p= 0.9236 (CHOOSE THE CLOSEST ANSWER)
14. Compute the beta of Apple stock on the SAMPLE basis. a. B= 0.7236 b. B=0.8114 c. B= 0.8791 d. B 1.2558 e. B= 1.4366 (CHOOSE THE CLOSEST ANSWER) 15. What does the Ceta of Apple stock computed at question 14 tells you if the S&P 500 index increases by 15%?
Transcribed Image Text:14. Compute the beta of Apple stock on the SAMPLE basis. a. B= 0.7236 b. B=0.8114 c. B= 0.8791 d. B 1.2558 e. B= 1.4366 (CHOOSE THE CLOSEST ANSWER) 15. What does the Ceta of Apple stock computed at question 14 tells you if the S&P 500 index increases by 15%?
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