INVESTMENTS (LOOSELEAF) W/CONNECT
11th Edition
ISBN: 9781260465945
Author: Bodie
Publisher: MCG
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Question
Chapter 12, Problem 22PS
Summary Introduction
To compute:
The change from last year to current year in the confidence index
Introduction:
Confidence index reflects the faith of investor in the security market and the economy. A deteriorating or low confidence index is considered as a bearish sign by the technical analyst. On the other hand A high or increasing level of confidence index is considered as a bullish sign by technical analyst.
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Given the returns over the 1988-2013 period, and the arithmetic mean return and volatility you calculated in the first quiz (which you could also recalculate now if necessary), what has been the ‘quick-and-dirty’ risk-adjusted return of these markets?
Year
Developed
1988
24.0%
1989
17.2%
1990
-16.5%
1991
19.0%
1992
-4.7%
1993
23.1%
1994
5.6%
1995
21.3%
1996
14.0%
1997
16.2%
1998
24.8%
1999
25.3%
2000
-12.9%
2001
-16.5%
2002
-19.5%
2003
33.8%
2004
15.2%
2005
10.0%
2006
20.7%
2007
9.6%
2008
-40.3%
2009
30.8%
2010
12.3%
2011
-5.0%
2012
16.5%
2013
27.4%
What are the correct answer from the options given below?
0.72
0.99
0.54
0.21
0.89
help me with this.
Given the returns over the 1988-2013 period, and the arithmetic mean return and volatility you calculated in the first quiz (which you could also recalculate now if necessary), what has been the ‘quick-and-dirty’ risk-adjusted return of these markets?
Year
Emerging
1988
40.4%
1989
65.0%
1990
-10.6%
1991
59.9%
1992
11.4%
1993
74.8%
1994
-7.3%
1995
-5.2%
1996
6.0%
1997
-11.6%
1998
-25.3%
1999
66.4%
2000
-30.6%
2001
-2.4%
2002
-6.0%
2003
56.3%
2004
26.0%
2005
34.5%
2006
32.6%
2007
39.8%
2008
-53.2%
2009
79.0%
2010
19.2%
2011
-18.2%
2012
18.6%
2013
-2.3%
what are the correct answer based on the option given?
0.51
0.29
0.76
0.98
0.12
help me with this
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?
Chapter 12 Solutions
INVESTMENTS (LOOSELEAF) W/CONNECT
Ch. 12 - Prob. 1PSCh. 12 - Prob. 2PSCh. 12 - Prob. 3PSCh. 12 - Prob. 4PSCh. 12 - Prob. 5PSCh. 12 - Prob. 6PSCh. 12 - Prob. 7PSCh. 12 - Prob. 8PSCh. 12 - Prob. 9PSCh. 12 - Prob. 10PS
Ch. 12 - Prob. 11PSCh. 12 - Prob. 12PSCh. 12 - Prob. 13PSCh. 12 - Prob. 14PSCh. 12 - Prob. 15PSCh. 12 - Prob. 16PSCh. 12 - Prob. 17PSCh. 12 - Prob. 18PSCh. 12 - Prob. 19PSCh. 12 - Prob. 20PSCh. 12 - Prob. 21PSCh. 12 - Prob. 22PSCh. 12 - Prob. 23PSCh. 12 - Prob. 24PSCh. 12 - Prob. 25PSCh. 12 - Prob. 1CPCh. 12 - Prob. 2CPCh. 12 - Prob. 3CPCh. 12 - Prob. 4CPCh. 12 - Prob. 5CP
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