Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Five years of realized returns for Falcon Freight Inc. (Falcon) are given in the following table:
2016
2017
2018
2019
Stock return 16.25% 11.05% 19.50% 27.30%
Also note that:
2020
8.45%
1. While Falcon was started 40 years ago, common stock has been publicly traded for the past 25 years.
2. The returns on Falcon's equity are calculated as arithmetic returns.
Given this return data, the average realized return on Falcon Freight Inc.'s stock is
The preceding data series represents a sample of Falcon's historical returns. Based on this conclusion, the standard deviation of Falcon's historical
returns is
If investors expect the average realized return on Falcon Freight Inc.'s stock from 2016 to 2020 to continue into the future, its expected coefficient of
variation (CV) is expected to equal
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Transcribed Image Text:Five years of realized returns for Falcon Freight Inc. (Falcon) are given in the following table: 2016 2017 2018 2019 Stock return 16.25% 11.05% 19.50% 27.30% Also note that: 2020 8.45% 1. While Falcon was started 40 years ago, common stock has been publicly traded for the past 25 years. 2. The returns on Falcon's equity are calculated as arithmetic returns. Given this return data, the average realized return on Falcon Freight Inc.'s stock is The preceding data series represents a sample of Falcon's historical returns. Based on this conclusion, the standard deviation of Falcon's historical returns is If investors expect the average realized return on Falcon Freight Inc.'s stock from 2016 to 2020 to continue into the future, its expected coefficient of variation (CV) is expected to equal
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