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Please help me with these financial questions. See attached file. 1. 1 From the price data below, compute the percentage holding period returns for periods
Please help me with these financial questions. See attached file.
1. 1 From the price data below, compute the percentage holding period returns for periods 2, 3 and 4. There were no cash payments during any of the periods. Period Stock Price Holding Period Return 1 $10 2 $13 ? 3 $11 ? 4 $15 ? From the holding period returns below, compute the average return and the standard deviation of returns. Holding Period Return Period 1 1 6% 2 3% 3 -1% 4 -3% 5 5% 6 0% Average Return ? Standard Deviation of Returns ? From the holding period returns below, compute the arithmetic average return and the geometric average return. Peri od Holding Period Return 1 4% 2 2% 3 1% 4 -2% 5 2% 6 2% Arithmetic Average Return ? Geometric Average Return ? 1 From the average returns below, compute the market risk premium for Small Cap Stocks. Asse t 1 Average Return Large Cap Stocks 11.8% Small Cap Stocks 16.5% Long-Term Corporate Bonds 6.4% Intermediate-Term Government Bonds 5.5% U.S. Treasury Bills 3.8% Risk Premium ? From the year-end prices and dividends below, compute the arithmetic and geometric average returns for the stock. Hint: compute the holding period returns first (there will only be 5 holding period returns). Period Stock Price Dividen d 1 $43.15 2 48.13 $.45 3 57.05 .49 4 45.13 .55 5 52.05 .62 6 61.13 .68 Holding Period Return Arithmetic Average ? Geometric AverageStep by Step Solution
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