Next month, the stock return for Pool Shark Corp. will be either 21% with probability 60% or -2% with probability 40%. What is the standard deviation of the monthly return? 9.06% 13.46% 8.62% 12.49 % 11.27%
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- A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate, g, throughout time. The stock’s required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of gL?Y shares have a monthly average return of 1% and a monthly return standard deviation of 6%. Returns are assumed to be normally distributed. Provide the following risk measures and show your working. Suppose there are 21 trading days in a month. Use 4-digit decimal places throughout your calculation. Calculate the stock's Value-at-Risk at the 95% level over a 1 day horizon. Calculate the stock's Value-at-Risk at the 95% level over 1 year horizon.) The table below shows the annual returns for a stock over the last four years. Year Return 2018 -12% 2019 15% 2020 27% 2021 -34% a. What is the stock's average return over the 2018-2021 period? b. What is the standard deviation of returns over this same period? MacBook Pro
- A stock is expected to earn 10.0% over the next year with a 40% probability and 3.0% otherwise. What is the standard deviation of returns based on this scenario analysis? Answer in percent, rounded to one decimal place.How do i start this question? Ford stock produced the following monthly returns (January - May): 1%, 10%, 6%, 3%, and 2%. I) Calculate the average return for each stock. II) Calculate the standard deviation of monthly return for each stock.A stock price is $20. It has an expected return of 12% and a volatility of 35%. What is the standard deviation of the change in the price in one day. (For this question assume that there are 365 trading days in the year.) Question 15Answer a. $0.23 b. $0.10 c. $0.26 d. $0.37
- You have a stock trading at $100. The stock follows a lognormal distribution: with drift of 20% and volatilty of 30%. The risk free rate is 2%. What is the risk-neutral probability for a 3- month 100 put to expire in the money? Find N(-d2). Compare the results.Phoenix Company common stock is currently selling for $20 per share. Security analysts at Smith Blarney have assigned the following probability distribution to the price of (and rate of return on) Phoenix stock one year from now: Price Rate of Return Probability $16 –20% 0.25 $20 0% 0.30 $24 +20% 0.25 $28 +40% 0.20A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate g throughout time. The stock’s required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of g?
- A stock is expected to pay a dividend of $1.76 at the end of the year. The required rate of return is rs = 16.07%, and the expected constant growth rate is g = 4.2%. What is the stock's current price?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.A share of stock sells for $48 today. The beta of the stock is 1.3 and the expected return on the market is 16 percent. The stock is expected to pay a dividend of $.70 in one year. If the risk-free rate is 4.7 percent, what should the share price be in one year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)A stock is expected to pay a dividend of $1.27 at the end of the year. The required rate of return is rs = 14.57%, and the expected constant growth rate is g = 2.6%. What is the stock's current price?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. Group of answer choices