Question
The following stock price information has been collected for QuickTrip (QT): END OF YEAR CLOSING PRICE 2016 $100.00 2017 $110.00 2018 $88.00 2019 $110.00 2020
The following stock price information has been collected for QuickTrip (QT):
END OF YEAR | CLOSING PRICE |
2016 | $100.00 |
2017 | $110.00 |
2018 | $88.00 |
2019 | $110.00 |
2020 | $132.00 |
QuickTrip has a correlation with the market portfolio of 0.60. The S&P 500 market portfolio has a standard deviation of 20%.
22. What is the arithmetic average return for QuickTrip over the sample period?
a. | 6.25% |
b. | 8.75% |
c. | 9.38% |
d. | 11.25% |
e. | 15.00% |
23. What is the standard deviation for QuickTrip over the sample period?
a. | 20.16% |
b. | 22.50% |
c. | 23.49% |
d. | 26.89% |
e. | 27.99% |
24. The investor looks at the current economy and determines that the risk-free rate is 2%, while the market portfolio risk premium is 6%. What is the required return to hold QuickTrip going forward?
a. | 4.86% |
b. | 5.63% |
c. | 6.51% |
d. | 7.12% |
e. | 8.45% |
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