# Given the holding period returns shown here compute the average returns and the standard deviations

(average expected return and risk) given the holding-period returns shown here, calculate the average returns and the standard deviations for the kaifu corporation and for the market month kaifu corp market 1 4% 2% 2 6 3 3 0 1 4 2 -1. (average expected return and risk) given the holding-period returns shown here, calculate the average returns and the standard deviations for the kaifu corporation and for the market month k aifu corp. To calculate the standard deviation of a portfolio investment with two assets, i and j, the expected returns and standard deviations of the returns for the two corporations are is a portfolio's standard deviation the weighted average of the standard deviations of its individual assets.

Determine the market standard deviation if you were to do this manually, you have to perform a long series of complex calculations you need to first find market variance by calculating the average return of the market during the period of time you are analyzing, deduct the average from every single return figure, find the square root of every difference, add them all up and divide the. The average annual return (aar) is a percentage used when reporting the historical return, such as the three-, five- and 10-year average returns of a mutual fund. Actually, my monthly returns are the ytd cumulative return, as in a monthly ytd statement, which perhaps hedgeselect was not looking for mia culpa anyway, my post is monthly ytd cumulative, then quarterly (for that quarter), semi-annual (for that period), and annual (for that period.

Calculate the expected return for stock a and stock b calculate the total risk (variance and standard deviation) for stock a and for stock b calculate the expected return on a portfolio consisting of equal proportions in both stocks. Past 36-month period by dividing a fund's annualized excess returns by the standard deviation of a fund's annualized excess returns since this ratio uses standard deviation as its risk measure, it is most appropriately applied when analyzing a fund that is an investor's sole holding. Given the holding-period returns shown here, compute the average returns and the average returns and standard deviations shown in figure 6-2 ithat did you leam 6-9 (holding-period returns) from the price data that follow, compute the holding-period returns using the data here, calculate the holding-period returns for each of the. The coefficient of variation (cv) is equal to the standard deviation divided by the expected return it is a standardized risk measure which allows comparisons between investments having different expected returns and standard deviations. Evaluation of value-at-risk models using historical data darryll hendricks any given holding period and any given percentile the advantages of these assumptions, however, the calculation of portfolio standard deviations using an equally weighted moving average approach is (1) .

Standard deviation is a measure of risk that an investment will not meet the expected return in a given period the smaller an investment's standard deviation, the less volatile (and hence risky) it is the larger the standard deviation, the more dispersed those returns are and thus the riskier the investment is. Calculate the variances and standard deviations of the returns on small-company stocks and us treasury bills compare the returns and risks of the two assets suppose international trading company’s stock returns follow a normal distribution with a mean of 175 percent and a standard deviation of 85 percent. While one-period returns may be normally distributed, this will generally not be the case for the value of a portfolio many periods hence, due to the effects of compounding if $1 is invested initially, the value will be (1+r1) at the end of period 1, where r1 is the rate of return in the first. To calculate a cumulative return, you need two pieces of data: the initial price, pinitial, and the current price, pcurrent (or the price at the end date of the period over which you wish to. Risk and return concepts readings: chapter 5 at the end of this unit students should be able to: define dollar return and rate of return define risk and calculate the expected rate of return, average rate of return, standard deviation, and coefficient of variation for a probability distribution.

## Given the holding period returns shown here compute the average returns and the standard deviations

Given the holding-period returns shown here, compute the average returns and the standard deviations for the zemin corporation and for the market this preview has intentionally blurred sections sign up to view the full version. A fund receives investments at the beginning of each year and generates returns as shown in the table year of investment amount of investment return 1 $1,000 15% given a 300-day holding period yield (hpy) of 7%, the effective annual yield (eay) is closest to: a 84% us and spanish bonds have return standard deviations of 064 and 0. Risk and return: the basics mini case you have been instructed to plan for a one-year holding period further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associated outcomes here are the standard deviations for the other alternatives: σ t-bills = 00. Show transcribed image text given the holding-period returns shown here, calculate the average returns and the standard deviations for the kaifu corporation and for the market (click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet) a.

The expected return of stock a is 14 percent with a standard deviation of 18 percent and the expected return of stock b is 18 percent with a standard deviation of 24 percent minor intends to invest 40 percent of her money in stock a, and 60 percent in stock b. Volatility for a given period of time standard deviation, , measures the historical variance (average of the squared deviations) of the returns from the mean return, , over that period of timethe formula for this is, where beta measures the relationship between the security returns, and the market, high beta stocks are considered to be more risk whereas low beta stocks are considered to be. Portfolio standard deviation is the standard deviation of a portfolio of investments it is a measure of total risk of the portfolio and an important input in calculation of sharpe ratio one of the most basic principles of finance is that diversification leads to a reduction in risk unless there is a perfect correlation between the returns on the portfolio investments. The equity premium: stock and bond returns since 1802 stock exchange has averaged 64 per cent per year, while the real the average compound rate of return on stocks was 58 per cent from 1802 through 1870, 72 per cent from table i stock market returns (standard deviations in parentheses) nominal.

6-10 (measuring risk and rates of return): a given the holding-period returns shown here, compute the average returns and the standard deviations for the zemin corporation and for the market month zemin corp market 1 6% 4% 2. Average return = (1 / n) x (sum of all the returns in the observation period) here, n is the total number of observations we calculate the average using excel's average function. Given the holding- period returns shown here, calculate the average returns and the standard deviations for the kaifu corporation and for the market. The return given by the bse sensex since its inception(1979) is 155% pa and greater the holding period, the more chances of making returns you can calculate the average return for any category or for any time period using our point to point return feature in mutual fund screener.