Question
7A) Tweener stock currently trades at a market price of $27.25 per share. Historically, in each of the last 8 years Tweener has paid a
7A) Tweener stock currently trades at a market price of $27.25 per share. Historically, in each of the last 8 years Tweener has paid a regular dividend each year of $0.55 per share. In the last 5 years, the year-by-year returns of Tweener stock have been 2.2%, -11%, 11%, 14.2%, and 4%. Using Excels GEOMEAN command, determine the historical annualized geometric return of Tweener stock. Enter your answer as a percentage, not as a decimal, with at least 3 significant digits of accuracy. HINT: In the section titled: Measuring Return pay attention to both Table 2 and Footnote 2
7B) Jumper stock currently trades at a market price of $39.08 per share. Historically, in each of the last 20 years Jumper has paid a single cash dividend (which varied year by year).In the last 5 years, the year-by-year returns of Jumper stock have been 19%, 5%, 15%, -12%, and 5%. Determine the standard deviation (volatility) of the annual returns of Jumper stock. Enter your answer as a decimal, not as a percentage, with at least 3 significant digits of accuracy.
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