You find a certain stock that had returns of 15 percent, -22 percent, 23 percent, and 10 percent for four of the last five years. The average return of the stock over this period was 9.5 percent. What was the stock's return for the missing year? Stock's return % What is the standard deviation of the stock's returns? Standard deviation % can you show all equations.

You find a certain stock that had returns of 15 percent, -22 percent, 23 percent, and 10 percent for four of the last five years. The average return of the stock over this period was 9.5 percent. What was the stock's return for the missing year? Stock's return % What is the standard deviation of the stock's returns? Standard deviation % can you show all equations.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 13P

See similar textbooks

Similar questions

You find a certain stock that had returns of 10 percent, −17 percent, 23 percent, and 15 percent for four of the last five years. The average return of the stock over this period was 10 percent. a. What was the stock’s return for the missing year? b. What is the standard deviation of the stock’s returns?
You find a certain stock that had returns of 14.2 percent, −22.1 percent, 28.1 percent, and 19.1 percent for four of the last five years. Assume the average return of the stock over this period was 12.2 percent. What was the stock’s return for the missing year? What is the standard deviation of the stock’s returns?
You find a certain stock that had returns of 15 percent, -17 percent, 23 percent, and 11 percent for four of the last five years. Assume the average return of the stock over this period was 10 percent. a. What was the stock's return for the missing year? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the standard deviation of the stock's returns? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. Answer is complete but not entirely correct. Missing return Standard deviation 32.50 % 52.50 %
You find a certain stock that had returns of 13.2 percent, –21.6 percent, 27.6 percent, and 18.6 percent for four of the last five years. Assume the average return of the stock over this period was 11.2 percent. What is the standard deviation of the stock’s returns?
The table below presents the returns on stocks ABC and XYZ for a five-year period. Year ABC XYZ 1 0.16 0.12 2 0.42 0.62 3 -0.02 -0.23 4 -0.26 -0.62 5 0.48 0.52 Calculate the average return, and standard deviation of stock ABC and XYZ. Also calculate the correlation between the two stocks. What does the correlation tell you about the return movements of the two stocks? Calculate the weight of each stock in the minimum variance portfolio, assume the expected return equals to average return for each stock. Find the mix of stocks ABC and XYZ that gives a portfolio on the efficient frontier AND demonstrate why this portfolio is on the efficient frontier by showing that there exists another portfolio of stocks ABC and XYZ that has the same level of risk (portfolio standard deviation) but inferior return. Hint: manipulate the weights you get from part b. Suppose the risk-free rate is 6%. Also assume the…
Your stock's returns for the past four years are as follows. t Return t1 19.79% t2 -0.58% t3 8.55% t4 4.68% Compute the geometric average return for this stock. Please enter your answer as a PERCENT rounded to 2 decimal places.
During the past five years, you owned two stocks that had the following annual rates of return: Year Stock T Stock B 1 0.19 0.08 2 0.08 0.03 3 −0.12 −0.09 4 −0.03 0.02 5 0.15 0.04 Compute the arithmetic mean annual rate of return for each stock. Which stock is most desirable by this measure? Compute the standard deviation of the annual rate of return for each stock. (Use Chapter 1 Appendix if necessary.) By this measure, which is the preferable stock? Compute the coefficient of variation for each stock. (Use the Chapter 1 Appendix if necessary.) By this relative measure of risk, which stock is preferable? Compute the geometric mean rate of return for each stock. Discuss the difference between the arithmetic mean return and the geometric mean return for each…
Suppose a stock has generated the following annual returns: 13.9%, 12.9% and 7.9%. What was the standard deviation of its returns? Answer in percent, rounded to two decimal places (e. g., 4.32% = 4.32).
You find a certain stock that had returns of 16 percent, −23 percent, 24 percent, and 9 percent for four of the last five years. The average return of the stock over this period was 10.2 percent. a. What was the stock’s return for the missing year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b. What is the standard deviation of the stock’s returns? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The table given below reports last five years data on annual rates of return (HPYS) on two stocks Year Stock A (%) Stock B (%) 1 16 -10 24 40 30 10 5 -20 20 2. Compute the standard deviation for each stock. Which stock is preferable by this measure measure
You find a certain stock that had returns of 14 percent, -21 percent, 22 percent, and 11 percent for four of the last five years. The average return of the stock over this period was 9.4 percent. a.What was the stock's return for the missing year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b.What is the standard deviation of the stock's returns? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Missing return a. % b. Standard deviation %
The last four years of returns for a stock are as follows: Year Return 1 - 4.3% 2 28.1% 3 11.6% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? a. What is the average annual return? The average return is%. (Round to two decimal places.) 4 3.7%