Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a

image text in transcribed

Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Five years of realized returns for ASA Robotics Inc. are given in the following table. Note that while ASA Robotics was started 40 years ago, its common stock has been publicly traded for the past 35 years. What was the average realized return on ASA Robotics Inc.'s stock from 2011 to 2015? Based on the sample data from 2011 to 2015, what is the standard deviation of ASA Robotics Inc.'s returns? 8.68% 9.70% 13.10% 7.47% If investors expect the average realized return on ASA Robotics Inc.'s stock from 2011 to 2015 to continue in the future, what will be its coefficient of variation (CV)? 0.83 0.38 0.45 0.52

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

Millionaire By Thirty The Quickest Path To Early Financial Independence

Authors: Douglas R. Andrew, Emron Andrew, Aaron Andrew

1st Edition

0446501840, 978-0446501842

More Books

Students also viewed these Finance questions