Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock had the following annual returns:6.18% ,22.24% ,18.74% , and-25.87%. Compute the following for the stock: a) Expected Return b) Variance : c) Standard

A stock had the following annual returns:6.18% ,22.24% ,18.74% , and-25.87%. Compute the following for the stock:

a) Expected Return

b) Variance :

c) Standard Deviation :

A stock has monthly returns of-26.42% ,-6.92% ,0.96% , and-11.44% . What is the stock's geometric average return?

Q8) A stock has an expected return of17.57%and a standard deviation of12.23%. Compute the following for this stock:

a) Upper range of 68% confindence interval :

b) Lower range of 68% confindence interval :

d) Lower range of 95% confindence interval :

e) Upper range of 95% confindence interval :

e) Upper range of 99% confindence interval :

f) Lower range of 99% confindence interval :

Q9) There is a33.27%probability of a below-average economy and a66.73%probability of an average economy.If there is a below-average economy, Stocks A and B will have returns of3.97%and2.65% , respectively.If there is an average economy, Stocks A and B will have returns of17.69%and4.15%, respectively. Compute the following for Stocks A and B:

a) Stock A Expected Return :

b) Stock B Expected Return :

c) Stock A Standard Deviation :

d) Stock B Standard Deviation :

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

Step: 3

blur-text-image

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

Financial Management Principles and Application

Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.

10th edition

536514119, 536514110, 978-0536514110

More Books

Students also viewed these Finance questions