Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. While BLM was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on its
1. While BLM was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on its equity are calculated as arithmetic returns. 3. The historical returns for BLM for 2014 to 2018 are: 2014 2015 2016 2017 2018 Stock return 6.25% 4.25% 7.50% 10.50% 3.25% Given the preceding data, the average realized return on BLM's stock is The preceding data series represents of BLM's historical returns. Based on this conclusion, the standard deviation of BLM's historical returns is If investors expect the average realized return from 2014 to 2018 on BLM's stock to continue into the future, its coefficient of variation (CV) will be
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started