Question: If we were to graph the returns of a stock
If we were to graph the returns of a stock against the returns of the S& P 500 Index, and the points did not follow a very ordered pattern, what could we say about that stock? If the stock’s returns tracked the S& P 500 returns very closely, then what could we say?
Answer to relevant QuestionsOver the past eight decades, we have had the opportunity to observe the rates of return and the variability of these returns for different types of securities. Summarize these observations. Suppose you purchased 16 shares of Disney stock for $ 24.22 per share on May 1, 2012. On September 1 of the same year, you sold 12 shares of the stock for $ 25.68. Calculate the holding- period dollar gain for the shares you ...Given the holding- period returns shown here, calculate the average returns and the standard deviations for the Kaifu Corporation and for the market. Given the following probabilities and returns for Mik’s Corporation, find the standard deviation. PROBABILITY RETURNS 0.40........... 7% 0.25........... 4% 0.15........... 18% 0.20........... 10% New Generation Public Utilities issued a bond with a $ 1,000 par value that pays $ 30 in annual interest. It matures in 20 years. Your required rate of return is 4 percent. a. Calculate the value of the bond. b. How does the ...
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