Shares Jak and Turner have the following historical returns: Year 2016 2017 2018 2019 2020 2021 2022 Share Jak Returns Share Turner Returns (%) -3.5 -4.8 23.39 47.78 (%) -4 5 21.45 41.63 20.33 36.00 12 11.81 33.90 13 Required: Calculate and explain which of the two shares had the most volatile returns over the seven-year period.
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- What is Stock X's geometric returns if it has the following returns? Year 1 8% Year 2 - 5% Year 3 10% Year 4 - 6% Year 5 15% a. 4.1%. b. 5.2% c. 6.8% d. 8.5%On a particular date, FedEx has a stock price of $88.24 and an EPS of $7.36. Its competitor, UPS, had an EPS of $0.30. What would be the expected price of UPS stock on this date, if estimated using the method of comparables? Question content area bottom Part 1 A.$5.40 B. $7.19 C.$8.00 D.$3.60A4 2e The stocks on ABC Company and XYZ Company have the following returns over the last five years. Year ABC returns XYZ returns 1 –0.2 0.2 2 –0.1 0.1 3 0.5 –0.1 4 0.3 0.05 5 0.1 0.08 e. Using the coefficient of variation (standard deviation/average return) as a measure of comparison between the two stocks, which stock is preferable?
- Question two The possible returns and associated probabilities of two shares, A and B Share A Share B РА RA (%) PB RB (%) 0.05 0.25 0.40 10 0.05 12 15 0.25 18 22 0.40 28 0.25 25 0.25 32 0.05 30 0.05 38 1.00 1.00 Calculate expected retum and RiskCorrelation The historical rates of return for two companies XYZ and MNP are given below. a. Find correlation between returns of the two companies. b. What can you conclude about strength and direction of the two stocks' co - movements? Year XYZ MNP 1 40.00% 40.00% 2 -10.00% 15.00% 3 35.00 % -5.00% 4 -5.00% -10.00% 5 15.00%Please answer d part Question 3. Stocks A and B have the following historical returns:Year Stock A return Stock B return2004 (24.25%) 5.5%2005 18.5% 26.73%2006 38.67% 48.25%2007 14.33% (4.5%)2008 39.13% 43.86% a) Calculate the average rate of return for each stock during the period 2004 through 2008. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of StockWhat would the realized rate of return on the portfolio have been in each year from 2004 through 2008? What would the average return on the portfolio have been during that period?b) Calculate the standard deviation of returns for each stock and for the portfolio.c) Looking at the annual returns on the two stocks, would you guess that the correlation coefficient between the two stocks is closer to +0.8 or to –0.8?d) If more randomly selected stocks had been included in the portfolio, which of the following is the most accurate statement of what would have happened to p?I. p would have remained constant.II.…
- X company stock price was $10 at the beginning of 2018, $14 at the beginning of 2019, $15 at the beginning of 2020, and $19 at the ending of 2020. Based on the previous information what will be the coefficient of variation for the stock assuming that the returns are equally probable. a a. 28.4% O b. 36.3% Oc. 67% O d. 73.2% Clear my choiceQ1 Consider the following data for the returns on shares of the swetter by Splash plc and that of the Ice Cream Manufacturing Company (ICMC)” Event Probability Splash Share Return ICMC Share Return Hot Weather 0.2 5 30 Modestly warm 0.6 15 15 Cold Weather 0.2 20 2 What is the expected return of each of the two shares?Question 7 Below is annual tock return data on ABC Corp and XYZ, Inc. Year ABC XYZ 2010 8% -3% 2011 20% 0% 2012 -8% 20% 2013 4% 8% v (a) What is the average return and standard deviation for each stock? (Round answers to 2 decimal places, e.g. 52.75.) ABC XYZ Average return Standard deviation (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
- Question 3 The price history of stock ABC from year 0 to year 2 is as follows: Po P₁ P₂ $50 $40 $60 a. What are the holding-period returns of stock ABC for the first year, for the second year, and for the entire period? b. What are the arithmetic and geometric average returns over this 2-year period? c. The price and dividend history of stock XYZ from year 0 to year 2 are as follows: Year Price Dividend 0 $100 1 ? $0 2 $100 $8 The price of stock XYZ in year 1 is not known. The holding-period return of stock XYZ in the second year (from year 1 to year 2) is 20%. What is the capital gains yield in the second year?Year beginning of year price Dividend paid 2015 125 2 2016 141 2 2017 120 2 2018 125 2 An investor buys six shares of this stock at the beginning of 2015, buys another beginning of 2016 sells one share at the beginning o 2017 sells all remaining share on 2018What are the arithmetic and geometric average weighted rate of return for the investor? What is the dollar-weighted rate of return?ADC 1) Based on End-of-Chapter Problem 6 in Chapter 5 The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end- of-year price depend on the state of the economy by the end of the year as follows: Stock Price Dividend. $2.00 $50 1.00 43 0.50 34 a. Calculate the expected holding-period return and standard deviation of the holding- period return. All three scenarios are equally likely. Boom Normal economy Recession b. Calculate the expected return and standard deviation of a portfolio invested half in Business Adventures and half in Treasury bills. The return on bills is 4%.