The table given below reports last five years data on rates of return on two stocks. Calculate and give the final answer. Year Stock A Stock B 21 -.05 2 -.09 15 3 -.12 05 4 14 10 11 15 1. Arithmetic mean for both the stocks. 2. Standard deviation for both stocks 3. Covariance 4. Correlation coefficient.

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: A stock had returns of 5, 14, 11, -8, and 6 percent over the past 5 years. The standard deviation…

A: mean of stock : mean x=sum of observationstotal number of observation standard deviation =∑nx-x2n-1

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

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A: Given information: Returns for last 5 years is 10%, 15%, -8%, -9% and 12% Calculation of arithmetic…

Q: Stock Z has the following returns for last five years. Calculate the arithmetic average return and…

A: Arithmetic Average Return refers to the concept which is appropriate for a shorter period of time.…

Q: The monthly rates of return for two corporations are given below: Month ABC Ltd. XYZ Ltd. January…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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: A stock has had returns of 6 percent, 24 percent, 16 percent, -12 percent, 31 percent, and -6…

A: Arithmetic average return=Total returnsNo. of years…

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

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Q: GM stock produced the following monthly returns (Jan.- May): 5%, 8%. -2%, 12%and 15% Ford stock…

A: Standard deviation measures the dispersion of the data and is used to calculate the risk.…

Q: A stock’s returns for the past 3 years were 10%, 215%, and 35%.What is the historical average…

A: Working note:

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

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Q: Stocks A and B have the following historical returns: Year Stock A return Stock B return 2004…

A: Calculation of correlation coefficient: Excel workings:

Q: What is the standard deviation for a stock that has had annual returns over the last four years of…

A: Sample Annual Returns: Year Return 1 10% 2 -4% 3 8% 4 -7%

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Q: A stock has had returns of −19 percent, 29 percent, 24 percent, −10.1 percent, 34.8 percent, and 27…

A: Year Return 1 -19.00% 2 29.00% 3 24.00% 4 -10.10% 5 34.80% 6 27.00%

Q: A stock has had returns of 14 percent, 32 percent, 15 percent, −20 percent, 32 percent, and −7…

A: Calculate the arithmetic average returns as follows:

Q: geometric

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Q: A stock has the following returns over a 3 year period: 25%, -4%, 8%. What is this stock's geometric…

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Q: A stock had returns of 17.95 percent -7.35 percent, and 23.90 percent for the past three years. What…

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Q: A stock has annual returns of 6 percent, 14 percent, -3 percent, and 2 percent for the past four…

A: Arithmetic Average = X1 + X2 + X3 +......+XNN

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

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

A: Period Return 1 -28.2% 2 15.8% 3 34.6% 4 3.4% 5 22.4%

Q: which stocks are undervalued or overvalued. a. Padma – 22 percent

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Q: What was the arithmetic average return on the stock over this five-year period? (Do not round…

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Q: A stock had returns of 17.47 percent, -7.03 percent, and 23.78 percent for the past three years.…

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

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

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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: How is this set-up to solve? Ford Stock I) & II) were in previous question GM stock produced the…

A: Note: Data considered as sample.  In case of sample size, for calculating standard deviation, one…

Q: How do i start this question? Ford stock produced the following monthly returns (January - May): 1%,…

A: Calculate the average return as follows: Average return = Sum of returns/Number of months Average…

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: A stock has had returns of 12 percent, 30 percent, 17 percent, -18 percent, 30 percent, and -7…

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Q: Using the data in the following table, estimate the average return and volatility for each stock.…

A: Return of stock A = Average  return of stock "A"  from 2008 to 2013

Q: Calculate the average rate of return and standard deviation of returns (as percents) for each stock…

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

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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.