Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Youve observed the following returns on Apple stock over the past five years: 14%, -9%, 16%, 21%, and 3 %. a. What was the (arithmetic)
Youve observed the following returns on Apple stock over the past five years: 14%, -9%, 16%, 21%, and 3 %. a. What was the (arithmetic) average return on the stock over this five-year period? b. What was the historical variance of the stocks returns over the period? c. What was the standard deviation of the stocks returns over the period? d. What was the risk premium on the stock if the risk-free rate for the period was 4.2 percent?
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