Calculate the standard deviation of returns

Assignment Help Finance Basics
Reference no: EM133111419

You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching. Stock A and Stock B, have the following historical returns:

Year A B

2014. -21% -6.0%

2015 38.0% 17.0%

2016 20% -13.0%

2017 -9.0% 40.0%

2018 20.0% 11.0%

Suppose you had held a portfolio consisting of 20% Stock A and 80% Stock B.

Calculate the standard deviation of returns for each stock and for the portfolio.

Reference no: EM133111419

Questions Cloud

Estimate the appropriate after-tax value : It will be located on a site that the firm currently owns. The firm paid $2,000,000 for this site many years ago, and it is fully depreciated.
Case study-williams industries : Williams Industries has decided to borrow money by issuing perpetual bonds with a coupon rate of 8.5 percent, payable annually, and a par value of $1,000. The o
Bond nominal yield to call-jerome corporation : The bond has a 5.0% nominal yield to maturity, but it can be called in 6 years at a price of $1,050. What is the bond's nominal yield to call?
Calculate the standard deviation of returns : You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching. Stock A and Stock B, have the follow
Calculate the standard deviation of returns : You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching. Stock A and Stock B, have the follow
Effective price received by company for commodity : On March 1st, the price of a commodity is $1,000 and the December futures price is $1,015. A producer of the commodity entered into a short position in a Decemb
Strike price of a two-year european put option : A stock price (which pays no dividends) is $50 and the strike price of a two-year European put option written on the stock is $60. The risk-free rate is 5% per
Independent sales commission rate : Appropriate linking of all data should be used. Please name the cell containing the Bonus incentive percentage and the Independent Sales Commission rate appropr
Compute what perril company reported as gross profit : Using the data above, compute what Perril Company (a retail clothing store) reported as Gross Profit on its 2021 income statement

Reviews

Write a Review

Finance Basics Questions & Answers

  Determining the capitalization rate

The capitalization rate that would be used for a warehouse with a AAA tenant and a 10-year lease that has annual increases will be lower than the capitalization

  Transform your eer diagram into a relational schema

A nonprofit organization depends on a number of different types of persons for its successful operation. The organization is interested in the following attribu

  Estimate the levered cost of equity

Use the compressed adjusted present value (APV) model to estimate the value of U and L. Also estimate the levered cost of equity

  Explain why it is often more beneficial for people

Explain why it is often more beneficial for people with low incomes to save for retirement in a TFSA instead of an RRSP.

  What would be the dollar amount of required reserves

Assume that the Fed decides to increase the required reserve percentage on transaction accounts above $40 million from 8 percent to 10 percent.

  Purchasing the selected futures product

Identify a client (or type of client) who would benefit from purchasing the selected futures product.

  How much will juliana have saved for house

How long will it take Ming to pay off his credit card? How much will Juliana have saved for her house during that same 5-year period?

  What is the amount the firm should use

What is the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project?

  Find the discounted payback

Fill in the table and find the discounted payback.

  Discuss the reasons why firms engage in ipos

Discuss the reasons why firms engage in IPOs. Why the number of IPOs varies by periods? What factors would make firms less likely to engage in an IPO?

  What is the amount of earnings accretion

What is the amount of earnings accretion/(dilution) per share in year 1, given the information below? Details:

  Design a swap that will net an investment bank

Design a swap that will net an investment bank, acting as intermediary, 0.2% per annum and will appear equally attractive for both companies.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd