Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If the return on stock A in year 1 was 9 %, in year 2 was 8 %, in year 3 was -10 % and
- If the return on stock A in year 1 was 9 %, in year 2 was 8 %, in year 3 was -10 % and in year 4 was 1 %, what was the standard deviation of returns for stock A over this four year period? (Round your answer to 1 decimal place and record without a percent sign. If your final answer is negative, place a minus sign before the number with no space between the sign and the number
- If the return on stock A in year 1 was 3 %, in year 2 was -8 %, in year 3 was 18 % and in year 4 was 4 %, what was the average annual return for stock A over this four year period? (Round your answer to 1 decimal place and record without a percent sign. If your final answer is negative, place a minus sign before the number with no space between the sign and the number).
- If the risk free rate is 4 %, the expected return on the market portfolio is 12% and the beta of Stock B is 1.2 , what is the required rate of return for Stock B according to the Capital Asset Pricing Model (CAPM)? (Round your answer rounded to one decimal place and record without a percent sign)
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