Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Five years of realized returns for BLM are given in the following table. Remember: 1. While BLM was started 40 years ago, its common stock

Five years of realized returns for BLM are given in the following table. Remember:

1. While BLM was started 40 years ago, its common stock has been publicly traded for the past 25 years.
2. The returns on its equity are calculated as arithmetic returns.
3. The historical returns for BLM for 2014 to 2018 are:

2014

2015

2016

2017

2018

Stock return 12.50% 8.50% 15.00% 21.00% 6.50%

Given the preceding data, the average realized return on BLMs stock is12.70% .

The preceding data series representsa sample of BLMs historical returns. Based on this conclusion, the standard deviation of BLMs historical returns is .

If investors expect the average realized return from 2014 to 2018 on BLMs stock to continue into the future, its coefficient of variation (CV) will be .

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

Essential Wholesaling Strategies For Real Estate Success

Authors: Farisg H. Al-farisi

1st Edition

979-8866103171

More Books

Students also viewed these Finance questions

Question

Explain the various techniques of Management Development.

Answered: 1 week ago