1. (20 points) Refer to the table below. The table below shows the annual returns...
70.2K
Verified Solution
Link Copied!
Question
Finance
1. (20 points) Refer to the table below. The table below shows the annual returns (in percentages) for 2 major market indices. For each index, calculate the arithmetic mean return and the geometric mean return of full-year returns from 2005-2015. What is the relationship between the arithmetic and geometric mean returns?
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
NASDAQ Composite Index
1.37
8.59
50.0
-31.5
-21.1
-39.3
85.6
39.6
21.6
22.7
39.9
Dow Jones Industrial Average
-0.61
3.15
25.3
-16.8
-7.1
-6.2
25.2
16.1
22.6
26.0
33.5
2. (i) Estimate the stock beta for Walt Disney Co (DIS). Download the monthly closing prices for 5 years into Excel. Choose a market index (e.g. S&P 500) and download the monthly closing values for 5 years into Excel. Calculate the monthly returns for Walt Disney Co (DIS) and the market index. Using the regression function in Excel, regress the stock return on the market index return. (ii) Compare and contrast the stock beta you estimated with two other sources (e.g. Yahoo! Finance, CNBC, etc.).
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
