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Use the following to answer question 11-17 The Table below shows an investment in shares of Ghana Commercial Bank (GCB) over a four year period.
Use the following to answer question 11-17 The Table below shows an investment in shares of Ghana Commercial Bank (GCB) over a four year period. Share Price (GHC) Dividend (GHC) Year 0 Year l Year 2 Year 3 Year 4 5.40 6.50 7.20 6.45 6.00 0.50 0.50 0.50 0.50 11. What is the arithmetic mean return for GCB shares over the four-year period? A. 18.90% B. 21.54% C. 19.62% D. 20.43% 12. What is the standard deviation of returns for GCB shares over the four-year period? A. 0.582% B. 0.046% C. 0.175% D. 0094% 13. What is the geometric mean return for GCB shares over the three-year period? A. 19.54% B. 20.20% C. 21.62% D. 18.48% 14. If Aryton Drug shares have the following returns: Year 1 : 15%; Year 2-1896; Year 3-2496; Year 4 = 26%. Calculate the covariance between Aryton Drug returns and that of GCB over the four-year period? A. 15.8% B. 16.6% C. 12.2% D. 15.8% 15. If the standard deviation of returns of Aryton Drug is 1.28, what is the correlation coefficient between Aryton Drug returns and GCB returns using the standard deviation of GCB calculated in question 12? A. GHc96.85 B. GHe96.56 C. GHc98.78 D. GHe97.88
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