Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You find a certain stock that had returns of 11 percent, 15 percent, 32 percent, and 8 percent for four of the last five years.

You find a certain stock that had returns of 11 percent, 15 percent, 32 percent, and 8 percent for four of the last five years. Assume the average return of the stock over this period was 10 percent.

Requirement 1:

What was the stocks return for the missing year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Stock's return %

Requirement 2:

What is the standard deviation of the stocks returns? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Standard deviation %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Basic Finance An Introduction To Financial Institutions Investments And Management

Authors: Herbert B. Mayo, Michael J Lavelle

13th Edition

0357714741, 978-0357714744

More Books

Students also viewed these Finance questions

Question

The nature and importance of the global marketplace.

Answered: 1 week ago