Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Five years of realized returns for HDS are given in the following table. Remember: 1. While HDS was started 40 years ago, its common stock
Five years of realized returns for HDS are given in the following table. Remember:
1. | While HDS 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 HDS for 2014 to 2018 are: |
2014 | 2015 | 2016 | 2017 | 2018 | |
---|---|---|---|---|---|
Stock return | 20.00% | 13.60% | 24.00% | 33.60% | 10.40% |
1. Given the preceding data, the average realized return on HDSs stock is ___
2. The preceding data series represents of HDSs historical returns. Based on this conclusion, the standard deviation of HDSs historical returns is ___
3. If investors expect the average realized return from 2014 to 2018 on HDSs 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started