Question
Shares in Lyft exhibit the following price history in the first half of the year. No dividends are paid. Month Price January $30 February $30.60
Shares in Lyft exhibit the following price history in the first half of the year. No dividends are paid.
Month Price January $30 February $30.60 March $30.29 April $30.90 May $30.90 June $31.52
A) Compute the simple arithmetic average monthly return (NOT PRICE!) over the sample period.
B) Compute the sample standard deviation (volatility) of monthly returns?
C) What is your best guess for the annual expected return going forward (ignore compound effects)?
D) What is your best guess for the annual expected volatility going forward?
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
New Venture Creation A Framework For Entrepreneurial Start-ups
Authors: Paul Burns
2nd Edition
1352000504, 978-1352000504
