You find a certain stock that had returns of 10.3%, -17.3%, 22.3%, and 18.3% for four of the last five years. The average return stock over this period was 11.6%. Assume the face value of the bond is $1,000. What was the stock's return for the missing year? (Round the final answer to 1 decimal place.) Stock's return 25.5 % What is the standard deviation of the stock's return? (Do not round intermediate calculations. Round the final answer to 2 decir places.) Standard deviation. 17109

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter9: Stocks And Their Valuation
Section: Chapter Questions
Problem 12P
icon
Related questions
Question
Problem 12-14 Calculating Returns and Variability (LO1)
You find a certain stock that had returns of 10.3 %, -17.3%, 22.3%, and 18.3% for four of the last five years. The average return of the
stock over this period was 11.6%. Assume the face value of the bond is $1,000.
What was the stock's return for the missing year? (Round the final answer to 1 decimal place.)
Stock's return
25.5 %
*
What is the standard deviation of the stock's return? (Do not round intermediate calculations. Round the final answer to 2 decimal
places.)
Standard deviation
17.4 %
Transcribed Image Text:Problem 12-14 Calculating Returns and Variability (LO1) You find a certain stock that had returns of 10.3 %, -17.3%, 22.3%, and 18.3% for four of the last five years. The average return of the stock over this period was 11.6%. Assume the face value of the bond is $1,000. What was the stock's return for the missing year? (Round the final answer to 1 decimal place.) Stock's return 25.5 % * What is the standard deviation of the stock's return? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Standard deviation 17.4 %
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Fundamentals of Financial Management, Concise Edi…
Fundamentals of Financial Management, Concise Edi…
Finance
ISBN:
9781285065137
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781285867977
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Fundamentals of Financial Management, Concise Edi…
Fundamentals of Financial Management, Concise Edi…
Finance
ISBN:
9781305635937
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning