Risk and Return Template

Risk and Return Template - Annualized Return End-Beg/Beg =...

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Annualized Return End-Beg/Beg = ROI Beginning Price 50.000000 Ending Price 55.000000 Days in Holding Period (in days) 225 ROI 0.100000 Annulized Return 0.167208 Beginning Price of Dowling Stock $100.00 Holding Period 365 Possible End Price ROI Ann. Return $110.00 0.100000 0.100000 $112.00 0.120000 0.120000 $114.00 0.140000 0.140000 ***Sta Coeffici ***to use th with our ex so ypou wi EXAMPLE W/ DIFF PROBS OF .25;.5;.25 Possible End Price ROI Ann. Return $110.00 0.100000 0.100000 $112.00 0.120000 0.120000 $114.00 0.140000 0.140000 ***Sta Coeffici EXAMPLE W/ DIFF PROBS OF .1;.2;.7 Possible End Price ROI Ann. Return $110.00 0.100000 0.100000 $112.00 0.120000 0.120000 $114.00 0.140000 0.140000 ***Sta Coeffici ((1+ROI) 365/#days in holding period) -1)
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Economy Prob. Weak 0.200000 0.100000 Normal 0.400000 0.120000 Strong 0.400000 0.140000 Expected Return: 0.124000 andard Deviation,SD 0.014967 ient of Variation (CV): 0.120699 he Standard Deviation Function in Excel, You must make all the probablilities equal so that xample since 40% is twice 20%, we input F4 and F5 twice ill have to CHANGE THIS FOR EVERY PROBLEM Economy Prob. Possible E ROI Ann. Return Economy Weak 0.250000 0.100000 $110.00 0.100000 0.100000 Weak Normal 0.500000 0.120000 $112.00 0.120000 0.120000 Normal Strong 0.250000 0.140000 $114.00 0.140000 0.140000 Strong Expected Return: 0.120000 Expecte andard Deviation,SD 0.014142 ***Standard Dev ient of Variation (CV): 0.117851 Coefficient of Varia Economy Prob. Possible E ROI Ann. Return Economy Weak 0.100000 0.100000 $110.00 0.100000 0.100000 Weak Normal 0.200000 0.120000 $112.00 0.120000 0.120000 Normal Strong 0.700000 0.140000 $114.00 0.140000 0.140000 Strong Expected Return: 0.132000 Expecte andard Deviation,SD 0.013266 ***Standard Dev ient of Variation (CV): 0.100504 Coefficient of Varia Ann. Ret of Dowling Stock Ann. Ret of Dowling Stock Ann. Ret of Dowling Stock
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Prob. Possible E ROI Ann. Return Economy Prob. 0.200000 0.100000 $110.00 0.100000 0.100000 Weak 0.200000 0.400000 0.120000 $112.00 0.120000 0.120000 Normal 0.400000 0.400000 0.140000 $114.00 0.140000 0.140000 Strong 0.400000 ed Return: 0.124000 Expected Return: viation,SD 0.014967 ***Standard Deviation,SD ation (CV): 0.120699 Coefficient of Variation (CV): Prob. Possible E ROI Ann. Return Economy Prob. 0.200000 0.100000 $110.00 0.100000 0.100000 Weak 0.200000 0.400000 0.120000 $112.00 0.120000 0.120000 Normal 0.400000 0.400000 0.140000 $114.00 0.140000 0.140000 Strong 0.400000 ed Return: 0.124000 Expected Return: viation,SD 0.014967 ***Standard Deviation,SD ation (CV): 0.120699 Coefficient of Variation (CV): Ann. Ret of Dowling Stock Ann. Ret of Dowling Stock
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Possible E ROI Ann. Return Economy Prob. Possible E 0.100000 $110.00 0.100000 0.100000 Weak 0.200000 0.100000 $110.00 0.120000 $112.00 0.120000 0.120000 Normal 0.400000 0.120000 $112.00 0.140000 $114.00 0.140000 0.140000 Strong 0.400000 0.140000 $114.00 0.124000 Expected Return: 0.124000 0.014967 ***Standard Deviation,SD 0.014967 0.120699 Coefficient of Variation (CV): 0.120699 Possible E ROI Ann. Return Economy Prob. Possible E 0.100000 $110.00 0.100000 0.100000 Weak 0.200000 0.100000 $110.00 0.120000 $112.00 0.120000 0.120000 Normal 0.400000 0.120000 $112.00 0.140000 $114.00 0.140000 0.140000 Strong 0.400000 0.140000 $114.00 0.124000 Expected Return: 0.124000 0.014967 ***Standard Deviation,SD 0.014967 0.120699 Coefficient of Variation (CV): 0.120699 Ann. Ret of Dowling Stock Ann. Ret of Dowling Stock Ann. Ret of Dowling Stock Ann. Ret of Dowling Stock
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ROI Ann. Return Economy Prob. Possible E ROI Ann. Retur 0.100000 0.100000 Weak 0.200000 0.100000 $110.00 0.100000 0.100000 0.120000 0.120000 Normal 0.400000 0.120000 $112.00 0.120000 0.120000 0.140000 0.140000 Strong 0.400000 0.140000 $114.00 0.140000 0.140000 Expected Return: 0.124000 ***Standard Deviation,SD 0.014967 Coefficient of Variation (CV): 0.120699 ROI Ann. Return Economy Prob. Possible E ROI Ann. Retur 0.100000 0.100000 Weak 0.200000 0.100000 $110.00 0.100000 0.100000 0.120000 0.120000 Normal 0.400000 0.120000 $112.00 0.120000 0.120000 0.140000 0.140000 Strong 0.400000 0.140000 $114.00 0.140000 0.140000 Expected Return: 0.124000 ***Standard Deviation,SD 0.014967 Coefficient of Variation (CV): 0.120699 Ann. Ret of Dowling Stock Ann. Ret of Dowling Stock
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rn Economy Prob. Possible E ROI Ann. Return Weak 0.200000 0.100000 $110.00 0.100000 0.100000 Normal 0.400000 0.120000 $112.00 0.120000 0.120000 Strong 0.400000 0.140000 $114.00 0.140000 0.140000 Expected Return: 0.124000 ***Standard Deviation,SD 0.014967 ***Sta Coefficient of Variation (CV): 0.120699 Coefficie rn Economy Prob.
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