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8, You find a certain stock that had returns of 4%,-5%,-15%, and 16% for four of the last five years. The average return of the
8, You find a certain stock that had returns of 4%,-5%,-15%, and 16% for four of the last five years. The average return of the stock for the past year-year period was 8 percent. What is the standard deviation of the stock's returns for the 5-year peri a. 21.39% b. 24.98% c. 27.16% d. 21.22% e. 34.02% od? 9. Which one of the following applies to the dividend growth model? An individual stock has the same value to every investor b. a. Even if the dividend amount and growth rate remain constant, the value of a stock can vary c. Zero-growth stocks have no market value d. Stocks that pay the same annual dividend will have equal market values e. The dividend growth rate is inversely related to stock's market price. 10. What is the amount of risk premium on a U.S. Treasury bill if the risk-free rate is 2.8 percent and the market rate of return is 8.35 percent? a. 0% b. 2.80% c. 5.55% d. 8.35% e. 11.15 %
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