Average return and standard deviation

Assignment Help Financial Management
Reference no: EM131878482

Calculating Returns and Variability

You’ve observed the following returns on Mary Ann Data Corporation’s stock over the past five years: 12 percent, –12 percent, 19 percent, 24 percent, and 10 percent.

a. What was the arithmetic average return on Mary Ann’s stock over this five-year period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Average return %

b-1. What was the variance of Mary Ann’s returns over this period? (Do not round intermediate calculations and round your answer to 5 decimal places. (e.g., 32.16161))

Variance   

b-2. What was the standard deviation of Mary Ann’s returns over this period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Standard deviation %

Reference no: EM131878482

Questions Cloud

What is quartz reservation price : provide it with at least eight years of tax loss carryforwards. What is Quartz’s reservation price?
Controlling unethical or illegal activities in business : Can voluntary programs be effective in controlling unethical or illegal activities in business? Does regulation work better?
Conventional fixed rate mortgage with an interest rate : A conventional fixed rate mortgage with an interest rate of 5.85%, a term of 5 years, and an amortization of 25 years.
Investment strategy to show the existence of arbitrage : If the option can be bought or sold at $0.8 per share, devise an investment strategy to show the existence of arbitrage.
Average return and standard deviation : What was the variance of Mary Ann’s returns over this period? What was the standard deviation of Mary Ann’s returns over this period?
Calculate the value of the fee simple estate : calculate the value of the fee simple estate assuming a 13% discount rate and a 5 year holding period are appropriate:
What is your capital gains yield on this investment : Over the year, you received a total of $500 in dividends. What is your capital gains yield on this investment?
Attempting to evaluate two possible portfolios consisting : Jeanne Lewis is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions.
Cause constant growth stock valuation model to be invalid : Which of the following assumptions would cause the constant growth stock valuation model to be invalid?

Reviews

Write a Review

Financial Management Questions & Answers

  Equipment to produce cash flows

Kingston, Inc. management is considering purchasing a new machine at a cost of $4,129,832. They expect this equipment to produce cash flows of $821,407, $841,261, $853,835, $1,065,425, $1,134,239, and $1,296,663 over the next six years. If the approp..

  Eligible for employer-sponsored retirement plan

Barry has just become eligible for his? employer-sponsored retirement plan. Barry is 40 and plans to retire at 65. Barry calculates that he can contribute ?$4,400 per year to his plan.? Barry's employer will match this amount. If Barry can earn? a(n)..

  Cash flow available to equity holders after recapitalization

What is cash flows available to equity holders after recapitalization?

  Cumulative nonvoting preferred stock

what if in L receives $220 worth of P non-voting preferred stock (rather than P bonds) in exchange for his T bonds?

  Show jack cash flow in this five-year period

Draw a cash flow diagram to show Jack’s cash flow in this five-year period.

  What is the firms cost of debt

A firm has a weighted average cost of capital of 10.295 percent and a cost of equity of 14.7 percent. The debt-equity ratio is 0.75. Tax rate is 32%. What is the firm's cost of debt? Sabrina's just paid an annual dividend of $0.88 per share. This div..

  What is the npv of the opportunity

What is the NPV of the opportunity if the interest rate is 6% per year? What is the IRR? Should you take the opportunity?

  What was dividend yield-percentage total return

Suppose a stock had an initial price of $60 per share, paid a dividend of $4 per share during the year, and had an ending share price of $70. Compute the percentage total return. What was the dividend yield? The capital gains yield?

  Describe how the internal rate of return method works

Describe how the Internal Rate of Return method works. What types of small business decisions require capital budgeting?

  What is the current price of the stock for a company

What is the current price of the stock for a company that will pay a $2.50 dividend in one year and has a 12% rate of return? The growth rate of the dividends is 5%. The required return on Meadowland’s stock is 11% and the dividend growth rate is 2.5..

  Cash flows from investing activities-financing activities

In 2012, Usher Sports Shop had cash flows from investing activities of –$4,504,000 and cash flows from financing activities of –$5,950,000. The balance in the firm’s cash account was $1,629,000 at the beginning of 2012 and $1,770,000 at the end of th..

  What is the beta of the portfolio

The Index Portfolio has invested in three stocks with the following beta and dollar amount of investment. The markets expected return is 13% and the risk free rate is 5%. What is the beta of the portfolio? What is the expected return of the portfolio..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd