Question
1. You have been following a stock for 3 months and the following is its past return Year 1: 8% Year 2: 16% Year 3:
1.
You have been following a stock for 3 months and the following is its past return
Year 1: 8%
Year 2: 16%
Year 3: 7%
What is the standard deviation of the stock based on the historical data? (Put the answer in decimal points instead of percentage)
2.
The returns of a mutual fund manager for the past 3 years are the following:
Year 1: 5%
Year 2: 12%
Year 3: -2%
What is the geometric average return of the fund for the past three years? Put return in decimal points instead of percentage.
3. Your investment has a 30% chance of earning a 11% rate of return, a 40% chance of earning a 11% rate of return and a 30% chance of earning -7%. What is the standard deviation on this investment? (Put your answers in decimal points instead of percentage)
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