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 10.20 percent. What was the stock's return for the missing year? (Round your answer to 1 decimal place. (e.g., 32.1)) Stock's return % What is the standard deviation of the stock's return? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Standard deviation

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 10.20 percent. What was the stock's return for the missing year? (Round your answer to 1 decimal place. (e.g., 32.1)) Stock's return % What is the standard deviation of the stock's return? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Standard deviation

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter13: Direct Foreign Investment

Section: Chapter Questions

Problem 1IEE

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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 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 %
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You find a certain stock that had returns of 15.2 percent, –22.6 percent, 28.6 percent, and 19.6 percent for four of the last five years. Assume the average return of the stock over this period was 13.2 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 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. Missing return b. Standard deviation
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…
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