Question
The share price information for Gammas Pty Ltd (GPL) is given in the table below. $ January 2016 76.84 February 2016 89.10 March 2016 92.20
The share price information for Gammas Pty Ltd (GPL) is given in the table below.
$
January 2016 76.84
February 2016 89.10
March 2016 92.20
April 2016 85.96
May 2016 82.30
Required:
a) Determine the standard deviation of returns for GPL's shares. (5 marks)
b) If the above monthly returns were randomly drawn from a normally distributed population of returns for Gammas Pty Ltd, interpret the level of risk related to investments in the company's shares. (5 marks)
c) To what extent do you think the standard deviation of returns calculated in Part (a)reflects the actual risk related to investments in GPL's shares? (5 marks)
Can you guys give me specific, detail answers, please thanks guysss
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