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calculate average annual return A - Calibri (Bo... 12 A A Aa BIUab xx A2 A Styles Styles Sensitivity YAT Fill and Send Sign Signal
calculate average annual return
A - Calibri (Bo... 12 A A Aa BIUab xx A2 A Styles Styles Sensitivity YAT Fill and Send Sign Signal Pane The last four years of returns for a stock are provided. -8% +20% +16% +8% What is the stock's average annual return as a percent? (b) What is the standard deviation (volatility) of the stock's returns as a percent? (Round your answer to two decimal places.) Styles SULISTIVILY Pill all I U ab XX ARVAVALT Styles Pane Sign Consider the returns for the past 5 months below (returns are in decimals). These past monthly returns are drawn from identical and independent distributions that are the same as those of monthly returns over the next year. 0.04 -0.03 0.05 0.09 -0.02 Calculate the expected return over the next month (as a percent). (b) Calculate the standard deviation of returns over the next month (as a percent). (Round your answer to two decimal places.) The Ishaces Bond Index fund (TLT) has a mean (average) and annual standard deviation of realized returns of 9% and 10%, respectively. If these are unbiased estimators of expected returns and future volatility, answer the following. (Round your answers to the nearest Integer.) (a) What is the 68% confidence interval for the returns on TLT next year (as a percent)? to9 What is the 95% confidence interval for the returns on TLT next year (as a percent)? % to What is the 99.7% confidence interval for the returns on TLT next year (as a percent)? toe annual returns -19.95 16.7% 19% -50% 43.2% 1.3% -16,6% What is the average annual return over the ten-year period (as a percent)? What is the standard deviation of annual returns over the ten-year period (as a percent) (Round your answer to two decimal places.) What is the 95% confidence interval on the return of this stock next year (as a percent) if the past average returns and volatility of returns are unbiased estimators of expected returns and future volatility (Round your answers to two decimal places.) tos Focus DE Step by Step Solution
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