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5 The rates of return on Cherry Jalopies, Inc., stock over the last five years were 14 percent, 11 percent, 1 percent, 3 percent, and

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5 The rates of return on Cherry Jalopies, Inc., stock over the last five years were 14 percent, 11 percent, 1 percent, 3 percent, and 14 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 19 percent, -2 percent, 2 percent, and 11 percent. Calculate the variances and the standard deviations for Cherry and Straw. (Do not round intermediate calculations. Enter your variance as a decimal rounded to 5 decimal places. Enter your standard deviation as a percent rounded to 2 decimal places.) Skipped Cherry Straw Variance eBook Standard deviation % % Print 6 The rates of return on Cherry Jalopies, Inc., stock over the last five years were 14 percent, 11 percent, -1 percent, 3 percent, and 14 percent. What is the geometric return for Cherry Jalopies, Inc. ? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) eBook Geometric return % Print 7 Suppose you bought 150 shares of stock at an initial price of $47 per share. The stock paid a dividend of $.46 per share during the following year, and the share price at the end of the year was $50. a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) eBook Capital gains yield % Print b. What is the dividend yield?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Dividend yield % c. What is the total rate of return on the investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Total rate of retum 8 A stock has returns of -5 percent, 11 percent, 8 percent, 10 percent, and -6 percent. What are the arithmetic and geometric returns? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Arithmetic return % % Geometric return eBook Print 9 A stock has had returns of 24 percent, 13 percent, 3 percent, -17 percent, -9 percent, and 20 percent over the last six years. What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) % eBook Arithmetic return Geometric return % Print 10 You have found an asset with an arithmetic average return of 13.30 percent and a geometric average return of 10.38 percent. Your observation period is 30 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Estimated Return 5 years % eBook 10 years % Print 20 years %

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