The following table lists the stock prices for Microsoft from 1989 to 1998 The company did not pay any dividends during the period a Estimate the average annual return you would have made on your investment b Estimate the standard deviation and variance in annual returns c If you were investing in ...

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The following table lists the stock prices for Microsoft from 1989 to 1998. The company did not

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The following table lists the stock prices for Microsoft from 1989 to 1998. The company did not pay any dividends during the period

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a. Estimate the average annual return you would have made on your investment

b. Estimate the standard deviation and variance in annual returns

c. If you were investing in Microsoft today, would you expect the historical standard deviations and variances to continue to hold? Why or why not?

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Applied Corporate Finance A Users Manual

ISBN: 9780471660934

2nd Edition

Authors: Aswath Damodaran

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Question Posted: May 22, 2024 06:00 AM

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The following table lists the stock prices for Microsoft from 1989 to 1998. The company did not

Question:

Year Price 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 SSSSSSSSSS 1.20 2.09 4.64 5.34 5.05 $ 7.64 10.97 20.66 32.31 69.34

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Applied Corporate Finance A Users Manual

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