Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Will rate all answers, thanks! 10. You have been asked to evaluate the risk of stock in Eason, Inc. The returns for this stock have
Will rate all answers, thanks!
10. You have been asked to evaluate the risk of stock in Eason, Inc. The returns for this stock have the following probability distribution (with negative numbers in parentheses): Scenario: Rate of Return Probability: Poor Average Good 409) .15 .45 .35 .37 .28 Someone has already calculated the expected return on this stock; it is 0.1500. What is the standard deviation of returns for this stock? A. B. C. D. E. .02646 .04536 .16267 .17748 .21298 2.646% 4.536% 16.267% 17.748% 21.298% Consider the following set of annualized returns on a stock over a 5-year period. (Negative numbers are shown in parentheses.) Use this information to perform the calculations for questions 11 and 12. Year 1 2 3 4 5 Return 0.2367 0.2830 (0.2306 0.0145 0.2444 11. The sample standard deviation of returns for this period of time is: A. B. C. D. E. .0173 .0904 .1096 .2175 .2487 1.73% 9.04% 10.96% 21.75% 24.87% 12. The geometric mean return for this period of time is: A. B. C. D. E. .0633 .0904 .1096 .2175 .2487 6.33% 9.04% 10.96% 21.75% 24.87%Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started