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Self-Study Problem 7.04 During the period from 2011 through 2015 the annual returns on small U.S. stocks were -3.80 percent, 19.15 percent, 45.91 percent, 3.26
Self-Study Problem 7.04 During the period from 2011 through 2015 the annual returns on small U.S. stocks were -3.80 percent, 19.15 percent, 45.91 percent, 3.26 percent, and -3.80 percent, respectively. the end of 2015? (Round answer to What would a $1 investment, made at the beginning of 2011, have been worth decimal places, e.g. 52.750.) Value in 2015 What average annual return would have been earned on this investment? (Round answer to 2 decimal places, e.g. 52.75.) Average annual return percent per year. Open Show Work Click if you would like to Show Work for this question: Self-Study Problem 7.01 Sheridan made a friendly wager with a colleague that involves the result from flipping a coin. If heads comes up, Sheridan must pay her colleague $16; otherwise, her colleague will pay Sheridan $16. What Sheridan's expected cash flow, and what is the variance of that cash flow if the coin has equal probability of coming up heads or tails? (Round answers to 2 decimal places, e.g. 52.75.) Expected cash flow Cash flow variance Suppose Sheridan's colleaque willing to handicap the bet by paving her $21 if the coin toss results in tails, If everything else remains the same, what are Sheridan's expected cash flow and the variance of that cash flow? Expected cash flow Cash flow variance Open Show Work Click you would like to Show Work for this
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