You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, stocks A and B, have the following historical returns:
Year RA RB
2009 20% 5%
2010 42% 15%
2011 20% 13%
2012 8% 50%
2013 25% 12%
Calculate the standard deviation of returns for each stock and for the portfolio.
I know the answersto be
A-25.3
B 24.3
portfilio 16.3
However, I am not able to figure out how to get ther.
I need step by step please.
You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, stocks A and B, have the following historical returns:
Year RA RB
2009 20% 5%
2010 42% 15%
2011 20% 13%
2012 8% 50%
2013 25% 12%
Calculate the standard deviation of returns for each stock and for the portfolio.
I know the answersto be
A-25.3
B 24.3
portfilio 16.3
However, I am not able to figure out how to get ther.
I need step by step please.
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Related questions
6-13)
You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, stocks A and B, have the following historical returns:
| Year | rA | rB |
| 2009 | -20.00% | -5.00% |
| 2010 | 42.00 | 15.00 |
| 2011 | 20.00 | -13.00 |
| 2012 | -8.00 | 50.00 |
| 2013 | 25.00 | 12.00 |
a. Calculate the average rate of return for each stock during the 5-year period.
b. Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period?
c. Calculate the standard deviation of returns for each stock and for the portfolio.
d. If you are a risk-averse investor, then, assuming these are your only choices, would you prefer to hold Stock A, Stock B, or the portfolio? Why?
Please show work for all problems, thank you!!
Set up an amortization schedule for a $40,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 7%. Round your answers to the nearest cent. Enter "0" if required
| Year | Payment | Repayment Interest | Repayment of Principal | Balance |
| 1 | $ | $ | $ | $ |
| 2 | $ | $ | $ | $ |
| 3 | $ | $ | $ | $ |
| 4 | $ | $ | $ | $ |
| 5 | $ | $ | $ | $ |
| Total | $ | $ | $ | |
How large must each annual payment be if the loan is for $80,000? Assume that the interest rate remains at 7% and that the loan is paid off over 5 years. Round your answer to the nearest cent.
$
How large must each payment be if the loan is for $80,000, the interest rate is 7%, and the loan is paid off in equal installments at the end of each of the next 10 years? This loan is for the same amount as the loan in part b, but the payments are spread out over twice as many periods. Round your answer to the nearest cent.
$
Why are these payments not half as large as the payments on the loan in part b?
-Select- Item 26
I. Because the payments are spread out over a longer time period, more principal must be paid on the loan, which raises the amount of each payment.
II. Because the payments are spread out over a longer time period, less interest is paid on the loan, which raises the amount of each payment.
III. Because the payments are spread out over a longer time period, less interest is paid on the loan, which lowers the amount of each payment.
IV. Because the payments are spread out over a shorter time period, more interest is paid on the loan, which lowers the amount of each payment.
V. Because the payments are spread out over a longer time period, more interest must be paid on the loan, which raises the amount of each payment.
You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1. You are considering selling $100,000 worth of one stock with a beta of 0.8 and using the proceeds to purchase another stock with a beta of 1.3. What will the portfolio's new beta be after these transactions? Do not round intermediate calculations. Round your answer to two decimal places.
You have observed the following returns over time:
| Year | Stock X | Stock Y | Market |
| 2009 | 12% | 11% | 10% |
| 2010 | 19 | 5 | 9 |
| 2011 | -15 | -8 | -12 |
| 2012 | 5 | 1 | 1 |
| 2013 | 20 | 13 | 13 |
Assume that the risk-free rate is 3% and the market risk premium is 6%. Do not round intermediate calculations.
What is the beta of Stock X? Round your answer to two decimal places.
What is the beta of Stock Y? Round your answer to two decimal places.
What is the required rate of return on Stock X? Round your answer to one decimal place.
%
What is the required rate of return on Stock Y? Round your answer to one decimal place.
%
What is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of Stock Y? Round your answer to one decimal place.
%
Your division is considering two investment projects, each of which requires an up-front expenditure of $25 million. You estimate that the cost of capital is 9% and that the investments will produce the following after-tax cash flows (in millions of dollars):
| Year | Project A | Project B |
| 1 | 5 | 20 |
| 2 | 10 | 10 |
| 3 | 15 | 8 |
| 4 | 20 | 6 |
What is the regular payback period for each of the projects? Round your answers to two decimal places.
Project A years
Project B years
What is the discounted payback period for each of the projects? Round your answers to two decimal places.
Project A years
Project B years
If the two projects are independent and the cost of capital is 9%, which project or projects should the firm undertake?
-Select-Project AProject BBoth projectsItem 5
If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake?
-Select-Project AProject BItem 6
If the two projects are mutually exclusive and the cost of capital is 15%, which project should the firm undertake?
-Select-Project AProject BItem 7
What is the crossover rate? Round your answer to two decimal places.
%
If the cost of capital is 9%, what is the modified IRR (MIRR) of each project? Round your answers to two decimal places.
Project A %
Project B %