Question
A).Your stock investments return 8%, 12%, and -4% in consecutive years. 1)What is the geometric return?. 2) What is the sample standard deviation of the
A).Your stock investments return 8%, 12%, and -4% in consecutive years.
1)What is the geometric return?.
2) What is the sample standard deviation of the above returns?
3) Using the standard deviation and mean that you just calculated, and assuming a normal probability distribution, what is the probability of losing 3% or more?
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Financial Markets And Institutions
Authors: Jeff Madura
5th Edition
0324027443, 9780324027440
