Calculate the variance and standard deviation of the returns

Assignment Help Financial Management

Reference no: EM132065278

AVERAGE RETURN –

(A) What is the average return for an asset that had annual returns over the past 10 years, respectively, of 10 percent, 2 percent, 8 percent, 4 percent, 6 percent, 2 percent, 10 percent, 8 percent, 6 percent and 4 percent? Calculate the variance and standard deviation of the returns? (PLEASE INCLUDE FORMULAS USED TO SOLVE PROBLEM FOR EXCEL).

RISK AND RETURN –

(B) Candy is buying only one investment asset and her choice is the asset in (QUESTION A), or an asset that paid an average return over the past ten years of 5.8 percent and had a standard deviation of 0 percent. What factors will affect Candy’s decision? (PLEASE INCLUDE FORMULAS USED TO SOLVE PROBLEM FOR EXCEL).

Reference no: EM132065278

Questions Cloud

Describing how mobility occurs in each : Traditional career paths strictly emphasize upward mobility within an organization. How does mobility differ in organizations with innovative career paths?

What is the modified duration of the bond : What is the YTM of the bond? What is the Macaulay duration of the bond? What is the modified duration of the bond?

What is the realized compound return : You forecast is that the bonds YTM will be 7 when it is sold and that the reinvestment rate on coupons will be 5 What is the realized compound return.

What is the purpose of the statement of cash flows : What is the purpose of the statement of cash flows? What information does it provide. Explain why statement of cash flows are important

Calculate the variance and standard deviation of the returns : Calculate the variance and standard deviation of the returns?

What is net present value of its growth opportunities : What is the net present value of its growth opportunities (NPVGO) per share?

Analyze the effect of both full-cost and variable-cost : Analyze the effect of both full-cost and variable-cost transfer pricing methods on Phipps' cash flows using a spreadsheet program such as Excel

What was the portfolios return attributbale : What was the portfolios return attributbale to:

What is the quoted price of the bond : The bond has a yield to maturity of 4.9 percent, a par value of $1,000, and matures in 21 years. What is the quoted price of the bond?

User Account

All Pages