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- 14. Consider the following possible returns over the next year on an asset Return probability -£40 0.5 £40 0.5 What is the variance of return of the asset.Use the following information to compute the standard deviation of returns: Yearly Returns Year Return (%) 1 19 2 1 3 10 4 26 5 4 a. 12% b. 10.42% c. 0.87% d. 108.5%Which one of the following is defined as the average compound return earned per year over a multiyear period? Multiple Choice A Geometric average return B Variance of returns C Standard deviation of returns D Arithmetic average return E. Normal distribution of returns
- Which one of the following best describes an arithmetic average return? Multiple Choice A. Total return divided by N − 1, where N equals the number of individual returns B. Average compound return earned per year over a multiyear period C. Total compound return divided by the number of individual returns D. Return earned in an average year over a multiyear period E. Positive square root of the average compound returnPart C: What is the standard deviation of the 10 years of returns?Consider the following information for the next year's return on IBM. probability return 10% 20% 0.8 0.2 Find the expected return. ⒸA. 2% B. 5% OC. 8% OD. 12% E. 11%
- Use the following information to compute the standard deviation of returns: Yearly Returns Year Return (%) 1 19 2 1 3 10 4 26 5 4Clear my Choice An investment produced annual rates of return of 5%, 12%, 7%, 11% and 3% respectively over the past five years. What is the standard deviation of these returns? O a. 1.9% O b. 2.7% O c. 4.6% O d. 3.8%c. If the historical annual returns of an Investment in various Economic Conditions (with their respective probabilities) over the last 35 years are the following, what is the Expected Return on that investment? Expected Real Economic Propabilities Returns Conditions Poor Normal Вoom 4% 0.25 11% 0.4 17% 0.35
- The series of returns of a single investment are presented as follows; Beginning value 100 115.0 138.0 Year 1 2 3 End value 115.0 138.0 110.4 i. compute the Arithmetic mean of the investment. ii. calculate the Geometric mean of the investment. iii. With an appropriate illustration argue which one of the two measures issupeWhat is the coefficient of variation (CV) of an asset with expected return 5% and standard deviation 1.5%? a. 0.3 b. 3.33 c. 7.5 d. 6.5An asset has an average return of 10.79 percent and a standard deviation of 22.71 percent. What is the most you should expect to earn in any given year with a probability of 16 percent? Multiple Choice O 57.34% 33.50% 23.28% 34.63% 11.92%