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Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $34.96 $31.72 $31.47 $32.83 $38.22 $40.54 Dividend $0.17 $0.18 $0.18 $0.21

Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $34.96 $31.72 $31.47 $32.83 $38.22 $40.54 Dividend $0.17 $0.18 $0.18 $0.21

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $34.96 $31.72 $31.47 $32.83 $38.22 $40.54 Dividend $0.17 $0.18 $0.18 $0.21
Transcribed Image Text:Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $34.96 $31.72 $31.47 $32.83 $38.22 $40.54 Dividend $0.17 $0.18 $0.18 $0.21
You observe a portfolio for five years and determine that its average return is 11.7% and the standard deviation of its returns in 19.8%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is %. (Enter your response as a percent rounded to one decimal place.) O A. Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than - 30%. B. Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than - 30%. C. No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than - 30%. D. No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than - 30%.
Transcribed Image Text:You observe a portfolio for five years and determine that its average return is 11.7% and the standard deviation of its returns in 19.8%. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is %. (Enter your response as a percent rounded to one decimal place.) O A. Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than - 30%. B. Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than - 30%. C. No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than - 30%. D. No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than - 30%.
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