Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

9 . Calculating Returns and Variability You ve observed the following past returns : - 2 4 % , 1 3 % , 2 9

9. Calculating Returns and Variability
Youve observed the following past returns : -24%,13%,29%,2%, and 21%
a) What is the arithmetic average returns?
b) What is the variance and standard deviation of the returns?
10. Calculating Real Returns and Risk Premiums
For problem 9, suppose the average inflation rate was 1.7%, and the average T-bill rate was 2.3%
a) What was the average real return on the stock?
b) What was the average nominal risk premium on the stock?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elements Of Financial Risk Management

Authors: Peter Christoffersen

2nd Edition

0128102357, 9780128102350

More Books

Students also viewed these Finance questions