Question
(1). Calculate the grossannual return on this stock and report the number in a separatecolumn. (2). Calculate the sample mean for the gross return. (3).
(1). Calculate the grossannual return on this stock and report the number in a separatecolumn.
(2). Calculate the sample mean for the gross return.
(3). Calculate the sample standard deviation for the grossreturn.
(4). Assume the risk-free rate is 0.02. Estimate the riskpremium.
(5). Estimate the sharp ratio.
Date 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Price before Dividend 742.5 758.8 742.9 697.7 744.9 693 735.7 692 768.7 767 777.2 784.5 758 771.8 796.7 823.2 Dividend 12.6 11.1 15.6 18.2 18 19.7 19.2 21.1 20.5 21.5 22 22.4 23 23.3 24.1 25
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the gross annual return we need to determine the percentage change in price from the beginning of the year to the end of the year including the dividend The formula for gross annual retur...
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Step: 2
Step: 3
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
