finance data bank

Question # 00004297 Posted By: spqr Updated on: 12/01/2013 10:59 AM Due on: 12/28/2013
Subject Finance Topic Finance Tutorials:
Question
Dot Image

Use the table for the question(s) below.

Consider the following realized annual returns:

Year End

Index Realized Return

Stock A Realized Return

2000

23.6%

46.3%

2001

24.7%

26.7%

2002

30.5%

86.9%

2003

9.0%

23.1%

2004

-2.0%

0.2%

2005

-17.3%

-3.2%

2006

-24.3%

-27.0%

2007

32.2%

27.9%

2008

4.4%

-5.1%

2009

7.4%

-11.3%

10) The average annual return on the Index from 2000 to 2009 is closest to:

A) 7.10%

B) 4.00%

C) 9.75%

D) 8.75%

12) The variance of the returns on the Index from 2000 to 2009 is closest to:

A) .0450

B) .3400

C) .1935

D) .0375

13) The variance of the returns on Stock A from 2000 to 2009 is closest to:

A) .3145

B) .0990

C) .1100

D) .9890


14) The standard deviation of the returns on the Index from 2000 to 2009 is closest to:

A) 19.5%

B) 20.5%

C) 3.8%

D) 8.8%

15) The standard deviation of the returns on Stock A from 2000 to 2009 is closest to:

A) 33.2%

B) 16.4%

C) 31.5%

D) 11.0%


16) Suppose that you want to use the 10 year historical average return on the Index to forecast the expected future return on the Index. The standard error of your estimate of the expect return is closest to:

A) 19.4%

B) 3.8%

C) 8.8%

D) 1.95%

17) Suppose that you want to use the 10 year historical average return on Stock A to forecast the expected future return on Stock A. The standard error of your estimate of the expect return is closest to:

A) 16.4%

B) 3.32%

C) 3.15%

D) 33.20%


18) Suppose that you want to use the 10 year historical average return on the Index to forecast the expected future return on the Index. The 95% confidence interval for your estimate of the expect return is closest to:

A) -10.6% to 28.2%

B) 6.8% to 10.7%

C) -37.0% to 47.6%

D) 4.9% to 12.7%

19) Suppose that you want to use the 10 year historical average return on Stock A to forecast the expected future return on Stock A. The 95% confidence interval for your estimate of the expect return is closest to:

A) 13.2% to 19.5%

B) 10.1% to 22.7%

C) 6.5% to 26.3%

D) -15.1% to 47.8%

20) The geometric average annual return on the Index from 2000 to 2009 is closest to:

A) 9.75%

B) 8.75%

C) 7.10%

D) 8.35%

21) The geometric average annual return on Stock A from 2000 to 2009 is closest to:

A) 12.4%

B) 16.7%

C) 13.2%

D) 17.8%


Dot Image
Tutorials for this Question
  1. Tutorial # 00004095 Posted By: spqr Posted on: 12/01/2013 11:49 AM
    Puchased By: 2
    Tutorial Preview
    for the question(s) below.Consider the following realized annual ...
    Attachments
    10000.docx (13.32 KB)

Great! We have found the solution of this question!

Whatsapp Lisa