How can the model be used to estimate the predicted return ona stock?

Q: The wider the dispersion of returns on a stock, the:

A: Investors evaluate the portfolio or security on the basis of risk profile. The risk profile can be…

Q: what is the return of stock a what is the return of stockb what is the standard deviation on stock…

A: Given: tate Probability(P) Return A Return B Poor 40% -0.08 -0.15 Normal 35% 0.19 0.14 Good…

Q: Explain carefully how and why a decline in the required rate of return affects stock values and…

A: The required rate of return is defined as the minimum percentage of return on investment in which an…

Q: How to figure out price targets for stocks by charting

A: One of the most typical ways to create a target price is to first identify a technical chart…

Q: What are the two components of most stocks’ expected total return?

A: Expected total return refers to the full return of an investment over a certain period of time.

Q: How do you calculate the Treynor ratio for the AMD stock?

A: Treynor ratio is referred to as the portfolio performance, which used to measure regarding the…

Q: How can you chart and predict falling or rising wedges for stocks?

A: Short-term, medium-term, and long-term trends: Stock Prices move either upwards, downwards, or…

Q: What does the meaning of maximum and minimum price in the stock performance graph? how to know which…

A: Succinctly summarized, a stock chart is a graph that illustrates the price of a stock over a certain…

Q: discuss what is the stock price?

A: >Stocks, when referred to in relation with the paid in capital of a corporation, refers to the…

Q: What stock valuation models are available?

A: The stock valuation models as follows: Absolute valuation: This method mostly emphases on finding…

Q: In evaluating (stock) portfolio return we use the market values at the beginning of the period to…

A: The percentage of a particular stock or any asset in a portfolio is known as the weight of the asset…

Q: Calculate the yield of the following stock.

A:

Q: What should be the risk premium and return on a stock with a Beta of zero under the Capital Asset…

A: CAPM is Capital Asset Pricing Model, used to calculated required return of stock based on 3…

Q: what is the best type of chart to represent the variable Tesco Stock Price?

A: The stock price movements can represent with the help of different chart patterns. The different…

Q: How will the presence of these and other similar stock options affect NEV’s earnings pershare?

A:

Q: what would be the stock price?

A: Current stock price refers to the present value of the share based on the future expected payoffs.…

Q: Why are the returns of sustainable stocks and traditional stocks different?

A: Stock returns are the returns that are generated in the stock market for investing in a stock.

Q: What is a stock’s volatility?

A: Stock Volatility:   Volatility is defined as a statistical measure of the dispersion of the returns…

Q: What is risk aversion, and how is risk aversion related to the expected return on a stock

A: In the world of investment, the risk appetite of the investor is an important consideration when…

Q: Is the following equation correct for finding the value of a constant growth stock? Explain.

A: Price of stock can be found from the constant growth model of dividend discount method.

Q: Calculate the expected return for Stock A.

A: Expected Return: It represents the profit or loss expected by an investor on an investment. It is…

Q: What are the benefits of stocks

A: A stock means the small units of the company which is issued by the company to investors. A company…

Q: What is the random walk hypothesis, and how does it apply to stocks?

A: Investors can choose from a variety of investment alternatives, with the goal of generating income…

Q: How do you calculate the beta of stock?

A: Beta is the measure of stock's volatility to the overall market, and is calculated as-

Q: How GARCH (generalized ARCH model) model is applied to Stock Price Volatility?

A: GARCH model is one of the models that is usually used by the financial analysts. The financial…

Q: Which of the following techniques is used to value stock options?   a. Black-Scholes method b.…

A: black scholes method is used to value options

Q: What effect does Standard Deviation of Stock returns have on call option price?

A: Standard Deviation of Stock Returns:The standard deviation of stock returns represent how much…

Q: What is the difference between stock price indexes that are simple averages of prices and those that…

A: A stock index, often known as a stock market index, is a financial index that monitors a stock…

Q: How does the current price of a stock depend on its own past values, as well as the current and past…

A: Market index of stock gauges the stock market which assists investors to analyze the market…

Q: What conditions must hold in order for a stock to be evaluatedusing the constant growth model?

A: Stock: It the investment in the form of equity which is a part of the ownership of a company that is…

Q: What is the expected return for stock A?

A: Expected Return: It is computed by the sum of individual returns proportionately weighted by each…

Q: How to know what price target to buy a stock?

A: A price target is an analyst's forecast for the future value of a commodity. Price targets can apply…

Q: How do I calculate the weighted bias of stocks?

A: Weighted bias of stocks also known as the price-weighted stock index, where each and every stock of…

Q: What will be the current stock price?

A: The current price of a stock is the most recent selling price of a stock in the market. It is the…

Q: How will the change in required return influence the price of a stock? How will the dividend growth…

A: The Gordon growth model calculates the price of the stock by using the dividends, growth rate of…

Q: What are the two sources, or components of return for stock?

A: A share in the ownership of a company is known as stock. When stock is purchased a small piece in…

Q: Let's explore the difference between "expected" and "actual" return of a stock. 1) How might we…

A: 1) The expected return (also known as the "expected rate of return") is the profit or loss that can…

Q: Discuss how to determine the risk or beta of a stock, the required rate of return of a stock and the…

A: In financial analysis, beta is a statistic used to estimate the volatility of an asset or portfolio…

Q: Calculate the expected return for each stock assuming the Capital Asset Pricing Model (CAPM) is…

A: Risk free rate = 5% Expected return on market = 11% Beta of stock A = 0.7 Beta of stock B = 1.4

Q: According to Technical Analysis, a stock velocity statistics most closely resembles which of the…

A: "Hi, Thanks for the Question. Since you asked multiple question, we will answer first question for…

Q: The constant growth DCF model used to evaluate the prices of common stocks isconceptually similar to…

A: Answer -true.

Q: What are some analyzes we can do to predict which stock will go up?

A: Stock price movement is primarily speculative in the short term (two to three months). The price…

Q: Calculated the expected return of each stock

A: Expected Return on Stock = Sum of (Probability x Return) in each case

Q: Given the Efficient Market Hypothesis, do you think we still need to study common stock valuati

A: Introduction : In simple words, the efficient market hypothesis refers to the hypothesis refers to…

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.