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Use geometric mean for A 1) The following stocks have historical returns as shown below: Stock A 10.0% 8.0% 12.0% Stock B 5% 6% 8%

Use geometric mean for A image text in transcribed
1) The following stocks have historical returns as shown below: Stock A 10.0% 8.0% 12.0% Stock B 5% 6% 8% What are the mean and standard deviations of the two stocks? b) If stock A was expected to earn either 10.0%, 8.0%, or 12% next year, what would be the mean expected return and standard deviation for this stock? c) Over the last year, the stock of Booth Intl. started at $80 a share and finished the year at $100 per share. The firm also paid investors a total of S10 of dividends. What would be the holding period return for the stock? Show all works.)

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