Simpson Inc. stock provided a return of 8.0%, 15% and -8% returns in the past three years. What is the expected return on stock this stock? 5.00% 5.13% 5.30% 5.60%
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- Use the table for the question(s) below. Consider the following realized annual returns: Index Stock A Year End Realized. Realized Return Return 23.6% 46.3% 24.7% 26.7% 30.5% 86.9% 9.0% 23.1% -2.0% 0.2% -17.3% -3.2% -24.3% -27.0% 32.2% 27.9% 4.4% -5.1% 7.4% -11.3% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Suppose that you want to use the 10-year historical average return on Stock A to forecast the expected future return on Stock A. The 95% confidence interval for your estimate of the expect return is closest to: O 6.5% to 26.3%. O-15.0% to 47.9%. -4.5% to 37.4%. 13.2% to 19.5%.A stock had returns of 8%, 14%, and 2% for the past three years. Based on these returns, what is the probability that this stock will earn at least 20% in any one given year? A) 0.5% B) 1.0% C) 2.3% D) 5.0% E) 16.0% Answer: C) 2.3% Please show the steps.A stock had returns of 8%, 14%, and 2% for the past three years. Based on these returns, what is the probability that this stock will earn at least 20% in any one given year? A) 0.5% B) 1.0% C)3% D) 5.0% E) 16.0%
- A stock had the following year-end prices and dividends. What is the geometric average annual return on this stock Time Price Dividend 0 $23.19 ? 1 $24.90 $0.23 2 $23.18 $0.24 3 $24.86 $0.25A stock had returns of 13 percent, 11 percent, 8 percent, 14 percent, -9 percent, and -5 percent over the past siX years. What is the geometric average return for this time period? ()5.39% 4.93% 5.13% 5.26% 4.67%Annual returns of Stock in the past 5 years are presented in the following table: Stock B O 5.18% 8.56% Compute the standard deviation of the annual return of Stock B. O 2.4% Year 1 -0.02 4.24% Year 2 0.08 Year 3 0.04 Year 4 0.06 Year 5 -0.04
- 10. The annual returns on the stock of a firm during the last five years are provided below. Year Return 12345 0.08 (or 8%) 0.10 (or 10%) 0.15 (or 15%) 0.20 (or 20%) -0.10 (or -10%) a) Find the holding period return of the stock over the five-year period. b) Compute the arithmetic average return of the stock over the five-year period. c) Calculate the geometric average return of the stock over the five-year period. d) Calculate the variance and standard deviation of the returns during this five-year period. Use the arithmetic average return in (b) for your calculations in (d). Use at least 5 decimal places for the variance computation to avoid rounding errors.A stock had returns of 2 percent, 1.4 percent, -4.2 percent, 5.8 percent, -9.9 percent, and 17.8 percent over the past six years. What is the arithmetic average return for this time period? _____%A stock had returns of 15.47 percent, 22.38 percent, −8.49 percent, and 9.42 percent over four of the past five years. The arithmetic average return over the five years was 12.68 percent. What was the stock return for the missing year? a. 22.16% b. 19.70% c. 11.94% d. 24.62% e. 7.64%
- 1. JL stock was priced at $24.7, $24.15, $23.99, and $24.26 at the end of Years 1 to 4, respectively. The annual dividend is constant at $.20 a share. What is the geometric average return on this stock?A stock had returns of 21.87 % ( 1 year ago), 2.61% (2 years ago), X (3 years ago), and -14.35% (4 years ago) in each of the past years. Over the past 4 years, the geometric average annual return for the stock was 3.65%. What was the arithmetic average annual return for the stock over the past years? O3.85% (plus or minus 4 bps) 4.47% (plus or minus 4 bps) 7.76% (plus or minus 4 bps) 3.45% (plus or minus 4 bps) None of the above is within 4 bps of the correct answerA stock had returns of 3%, 12%, 26%, - 14%, and - 1% for the past five years period based on these returns, what is the approximate probability that the stock will return at least 20% in any one given year?
