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m A stock had returns of 1 2 % , 2 % , 9 % , 1 6 % , and - 7 % for
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A stock had returns of and for the past five years. The average return on corporate bonds and government of Canada treasury bills over the past five years was and respectively. Based on this information, please answer the questions below:
a What was arithmetic average annual return for this stock? marks
b What was the standard deviation of the returns for this stock? marks
c Assuming that the returns on the stock follow a normal distribution, what is the range of possible returns, of the time? marks
d What is the reward for bearing risk risk premium of owning this stock? marks
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