The Russell 1000 is a value-weighted index of the largest ~1,000 U.S. stocks. The Russell 2000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Russell 1000 is a value-weighted index of the largest ~1,000 U.S. stocks. The Russell 2000 is a value-weighted index of the next largest ~2,000 U.S. stocks. The Russell 3000 is a value- weighted index of the largest ~3,000 U.S. stocks - it encompasses both stocks in the R1000 and stocks in the R2000. Use FactSet to extract end-of-year total return index values for three exchange-traded funds (ETFs) that mimic the Russell 1000 (ticker IWB), the Russell 2000 (IWM), and the Russell 3000 (IWV) from 2010 to 2016 (that is, 12/31/2010, 12/30/2011, ..., 12/30/2016), download this data to Excel, and compute annual returns for each index for the period 2011-2016. 2. Calculate the arithmetic average return, geometric average return and the standard deviation of returns for the three indices. Why are the return averages and the standard deviation of the R3000 closer to those of the R1000 than those of the R2000? The Russell 1000 is a value-weighted index of the largest ~1,000 U.S. stocks. The Russell 2000 is a value-weighted index of the next largest ~2,000 U.S. stocks. The Russell 3000 is a value- weighted index of the largest ~3,000 U.S. stocks - it encompasses both stocks in the R1000 and stocks in the R2000. Use FactSet to extract end-of-year total return index values for three exchange-traded funds (ETFs) that mimic the Russell 1000 (ticker IWB), the Russell 2000 (IWM), and the Russell 3000 (IWV) from 2010 to 2016 (that is, 12/31/2010, 12/30/2011, ..., 12/30/2016), download this data to Excel, and compute annual returns for each index for the period 2011-2016. 2. Calculate the arithmetic average return, geometric average return and the standard deviation of returns for the three indices. Why are the return averages and the standard deviation of the R3000 closer to those of the R1000 than those of the R2000?
Expert Answer:
Answer rating: 100% (QA)
As an AI language model I dont have direct access to external databases or FactSet However I can guide you through the process of calculating the arithmetic average return geometric average return and ... View the full answer
Related Book For
Basic Business Statistics Concepts And Applications
ISBN: 9780132168380
12th Edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel
Posted Date:
Students also viewed these finance questions
-
The Russell 1000 is a stock market index consisting of the largest U.S. companies. The Dow Jones industrial Average is based on 30 large companies. The data giving the annual percentage returns for...
-
a. Commonwealth Bank of Australia (CBA) has reported a 99% Value at Risk (VaR) of 3.09% over a 1268 trading period. What does this mean? b. Why do some investors prefer to use Lower Partial Standard...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Rice and Flower were partners sharing profit and loss equally. Statement of Financial Position as at 31 December 2020. Non current Assets Premises Machinery Vehicles Fittings Current Assets Inventory...
-
According to the U.S. Census Bureau publication Manufactured Housing Statistics, the mean price of new mobile homes is $65,100. Assume a standard deviation of $7200. Let x denote the mean price of a...
-
You want to have $75,000 in your savings account 12 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.8 percent...
-
How are strategic objectives translated into action?
-
Journalize entries for the following related transactions of Blue Moon Company: a. Purchased $60,000 of merchandise form Sierra Co. on accounts, terms 1/10, n/30. b. Paid the amount owed on the...
-
Consider Fulton Manufacturing Company's 8 3/4 percent bonds that mature in April 16,2026. Assume that the interest on these bonds is paid and compounded annually. Determine the value of $1,000...
-
During the courtship and negotiation stages, managers often emphasize "equal partnerships" and do not reveal (or even try to hide) their true intentions. What are the ethical dilemmas here?
-
032CDEwtaNFgyplMS1LhXyKDRmxDVtQjoUFtyHmDemO32UQV26QzZbj2p%2f6robOX6s50L... 0x...
-
4. There are 1,000 people in the village of Fasching. The villagers enjoy only two goods, festivals and food. Festivals are a public good, whereas food is a private good. The villagers have identical...
-
A company has $400 million worth of debt outstanding with an average interest rate of 5% and 50 million common shares outstanding worth $12 each. The company's tax rate is 28%, beta is 1.3, the yield...
-
Suppose that a firm just paid an annual dividend of $1.20 per share. This grows at 10% per year for each of the next two years, after which it will grow at 3% per year forever. The market risk...
-
Compute the net present value of a capital project to buy new equipment for replacing old equipment, given the following data and a minimum return of 7% Ignore income taxes. Old equipment New...
-
Use the Black-Scholes option pricing model to price a one-year at the money call option on a stock that is trading at $50 per share, Rf is 5%, annual volatility is 25%. You can only use your...
-
Planet Fitness, Inc. is a franchisor and operator of fitness centers in 50 states, the District of Columbia, Puerto Rico, Canada, the Dominican Republic, Panama and Mexico. The company is well-known...
-
Explain briefly what is meant by electronic data interchange (EDI). How does EDI affect a companys audit trail?
-
Why is it true that for a given sample size, n, an increase in confidence is achieved by widening (and making less precise) the confidence interval?
-
How have stocks performed in the past? The following table presents the data stored in Stock Performance, which show the performance of a broad measure of stock performance (by percentage) for each...
-
The following information is available for two samples selected from independent and similarly shaped right skewed populations: Sample 1: n1 = 5 1.1 2.3 2.9 3.6 14.7 Sample 2: n2 = 6 2.8 4.4 4.4 5.2...
-
Mull plc acquired shares in two companies as follows: Skye Ltd Ordinary shares - 8 million acquired on 1 June 1996 for \( 4.50\) each. Preference shares - \( 5000008 \%\) redeemable preference shares...
-
You are the accountant responsible for the Rag group consolidation. The profit and loss accounts of Rag plc, Tag Ltd and Bobtail Ltd for the year ended 31 March 1999 are given opposite....
-
The balance sheets of A plc and its investee companies B Ltd and D Ltd, and of B Ltd's investee company C Ltd at 31 March 1998 (the accounting date for all four companies) are given below: 1....
Study smarter with the SolutionInn App