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The prices for IMB over the last 3 years are given below. Assuming no dividends were paid, what was the 3-year holding period return?
The prices for IMB over the last 3 years are given below. Assuming no dividends were paid, what was the 3-year holding period return? Year Price $70 0 1 2 3 64 68 BO The return pattern on your favorite stock has been 5%, 8%, -12%, 15%, 21% over the last five years. What are your average return and total change in wealth per year over the period? The normal distribution is a theoretical distribution for a population. The distribution can be used to estimate how risky a cash flow or return is. If the mean is 12% and the standard deviation is 22.5%, what is the range of possible returns for a 2 standard deviation change and what percentage of all observations would fall within 2 standard deviations?
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Step: 1
1 To calculate the 3year holding period return we need to determine the percentage change in the price of the stock over the three years Year 0 price 70 Year 1 price 64 Year 2 price 68 Year 3 price 80 ...Get Instant Access to Expert-Tailored Solutions
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