The following shows the expected percentage returns on three stocks over the next six years: Stock Percentage Return (%) Year 1     2      3      4      5         6 A     10   5      6      8     12       15 B      8    4 4.  80   6.4   9.6       12 C     5     10   12    10    6          6 Required: (i) Find the expected return for each of the stock. (ii) Compute the variance and standard deviation for stock A, B and C. Show your working. (iii) Justify how can you minimize the risk of the above combination of stocks. (Must show working method as well)

Q: he following are the monthly rates of return for Madison Cookies and for Sophie Electric during a…

A: a). Computation of average monthly rate of return (Ri)¯ for M cookies as follows: Average Return =…

Q: You've observed the following returns on Yamauchi Corporation's stock over the past five years:…

A: Information Provided: Return = -27.9%, 15.6%, 34.2%, 3.3%, 22.3%

Q: The following are the monthly rates of return for Madison Cookies and for Sophie Electric during a…

A: a.Calculation of Average Monthly Rate of Return for each stock:The Average Monthly Rate of Return is…

Q: You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 16…

A: The question is based on the calculation of average return and risk associated with the past data of…

Q: Consider the following annual returns of Molson Coors and International Paper:     Molson Coors…

A:

Q: You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 13…

A:

Q: Two stock prices for six days are given below.   Price A Price  B 25 55 29 60 33 61 29 63…

A: Part 1 & 2 Statement for Calculation of Average Return & Standard Deviation  Price A…

Q: The last four years of returns for a stock are as shown here: E a. What is the average annual…

A: Year Return 1 -4.30% 2 27.90% 3 12.30% 4 3.60% SUM = 39.50%

Q: Compute the mean return, variance, and standard deviation of returns, and the coefficient variation…

A: Formula to be used: Mean(X̄)=∑X/n Variance=∑ (X-X̄)^2)/n Standard deviation (SD)=√(∑(X-X̄)^2)/n…

Q: You’ve observed the following returns on Yamauchi Corporation’s stock over the past five years:…

A: A statistical measure that represents the spread among the return of the investment is term as the…

Q: ts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers…

A: Note : As per our guidelines, we can only answer up to three subparts. Please post other parts…

Q: The rate of return on General Electric common stock over the coming year is normally distributed…

A: To find the Probability of Negative return Firstly one has to find the z Value.

Q: I. 1. Consider stocks A and B with the following past returns: Month 1 A 3 4 4% 6% 8% | 2% в 10% 8%…

A: Weight of A is 30% Weight of B is 70% To Find: Contribution of Stock B in standard deviation of…

Q: Assume these are the stock market and Treasury bill returns for a 5-year period:   Required: a.…

A: a) Computation of risk premium on common stock: Working note:

Q: Here are the returns on two stocks. Digital Cheese +16 Executive Fruit +9 January February March -4…

A: Variance is a tool which shows the risk involved in assets. It is computed simply by squaring…

Q: Each day, a certain stock has an expected increase of $0.04 with variance of $0.10. By calculating,…

A: A stock is a sort of financial instrument that indicates the holder owns a share of the issuing…

Q: Observed the following Corporation stock over the pa e years: -28.5 percent, 16 percent, 35 percent,…

A: The sum of all the rates of return divided by a total number of years is called Arithmetic average…

Q: Your rate of return expectations for the stock of Gidimadjor Company during the next year are…

A: As per Q&A guidelines, We will answer first three subparts when multiple subparts given under…

Q: You've observed the following returns on Yamauchi Corporation's stock over the past five years:…

A: A. The arithmetic mean of a set of numerical values is calculated by adding them together and…

Q: Consider the following annual returns of Molson Coors and International Paper: Molson Coors…

A: A statistical measure that represents the variation in the return on the stock is term as the…

Q: geometric

A: Introduction: The term geometric mean refers to investment's average growth. In other words it is…

Q: An analyst gathered daily stock returns for February 1 through March 31, calculated the Fama-French…

A: The Fama French 3 factor model is an asset pricing model that calculates an investment's expected…

Q: ere are the returns on two stocks.                                                Digital Cheese…

A: Risk, Variance, and Standard Deviation: The possibility that the actual returns will be different…

Q: 88.0

A: Formula to calculate the actual return @95.44% confidence is: 95.44% = [Mean - 2*standard deviation,…

Q: The following shows the expected percentage returns on three stocks over the next six years: Stock…

A: Standard deviation is used to measure the portfolio risk. It is the under root of variance of each…

Q: Question 3 The following shows the expected percentage returns on three stocks over the next six…

A: Return expected by the investor from the asset or security is known as expected return. It can be…

Q: 18.93 percent, −15.21 percent, 12.41 percent, and 25.54 percent for the past five years. What is the…

A: Variance is a measure of risk and represents degree of variability in the returns of the given…

Q: Here are the percentage returns on two stocks.   Month Digital Cheese   Executive Fruit January…

A: Excel Spreadsheet: Excel Workings:

Q: Consider the following annual returns of Molson Coors and International Paper:     Molson Coors…

A: Calculation of Average Return, Standard Deviation and Coefficient of Variation:The average return of…

Q: Your rate of return expectations for the stock of Kayleigh Cosmetics Company during the next year…

A: Expected return shows possible return from the stock and standard deviation shows risk assign in…

Q: The following table shows historical beginning-of-year prices for two stocks. A B C Year Stock A…

A: 1 Year Stock A  Stock B 2 2014 33.47 575.35 3 2015 31.54 569.84 4 2016 30.91 594.22 5 2017…

Q: Over the past five years, a stock returned 8.3 percent, -32.5 percent, -2.2 percent, 46.9 percent,…

A: Formula for variance: σH2=∑t=1nRt-Rt¯2n-1Where,σH2= VarianceRt=Rate of ReturnR¯t=Rate of…

Q: You find a certain stock that had returns of 10 percent, −17 percent, 23 percent, and 15 percent for…

A: Given: Returns = 10%, -17%, 23%, 15% Average return = 10%

Q: The returns on Relnvest Ltd. and GEM Inc. stocks over the past five months are as follows: Relnvest…

A: Given information: Returns of two stocks from January to May   Reinvest Ltd GEM Inc January 15%…

Q: Required: a-1. Calculate the variance and standard deviation of each stock. a-2. Which stock is…

A: Given:

Q: Consider the following annual returns of Molson Coors and International Paper:    MolsonCoors…

A: The average return, standard deviation and coefficient of deviation are calculated to select the…

Q: The last four years of returns for a stock are as shown here: a. What is the average annual return?…

A: Given: Year Return 1 -4.2% 2 28.1% 3 11.8% 4 3.6%

Q: You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 15…

A: The provided returns are 15 percent, –6 percent, 18 percent, 14 percent and 10 percent.

Q: The last four years of returns for a stock are as follows: Year 3 4 Return - 4.3% 28.1% 12.3% 3.9%…

A: Year Return 1 -4.3% 2 28.1% 3 12.3% 4 3.9%

Q: I. 1. Consider stocks A and B with the following past returns: Month 1 2 3 4 A 4% 6% 8% 2% В 10% 8%…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: A stock had returns of 14.35 percent, 18.75 percent, −14.55 percent, 12.35 percent, and 25.03…

A: Variance shows spread in data. It shows how much values are far from average of all observations. In…

Q: You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 15…

A: The formula to calculate mean value is given below:

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.