Crash-n-burn stock over this five-year period

Assignment Help Financial Management
Reference no: EM132020452

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 14 percent, –14 percent, 16 percent, 26 percent, and 10 percent.

a. What was the arithmetic average return on Crash-n-Burn’s stock over this five-year period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)

  Average return %

b-1. What was the variance of Crash-n-Burn’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 Crash-n-Burn’s returns over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Standard deviation %

Reference no: EM132020452

Questions Cloud

Considering divesting one of its manufacturing plants : Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants.
What is the settlement price-opening price and closing price : What is the settlement price, opening price and closing price for futures? What is open interest?
Calculates all relevant cash flows : Using Excel, create a spreadsheet that calculates all relevant cash flows. compute the NPV and IRR.
What are weights for each capital source using book values : What are the weights for each capital source using book values? What advantages does using the book value have when determining the cost of capital?
Crash-n-burn stock over this five-year period : What was the arithmetic average return on Crash-n-Burn’s stock over this five-year period?
Explain the impact of real estate : Why should revenue estimates in higher education be conservatively set in the budget? Explain the impact of Real Estate
What was the average real return on crash-n-burn stock : What was the average real return on Crash-n-Burn’s stock? What was the average nominal risk premium on Crash-n-Burn’s stock?
What was dividend yield and the capital gains yield : What was the dividend yield and the capital gains yield?
Discuss the meaning and importance of capital budgeting : Here we are going to discuss the meaning and importance of capital budgeting.

Reviews

Write a Review

Financial Management Questions & Answers

  How much will each mortgage lender receive

At the foreclosure sale, the house was sold for $175,000. How much will each mortgage lender receive?

  Dividends are anticipated to maintain growth rate

The next dividend payment by Blue Cheese, Inc., will be $1.92 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. The stock currently sells for $38 per share. What is the expected capital gains yield? What is the ..

  Makes the minimum monthly payment and makes no other charges

If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card?

  Dividend valuation with constant growth model

Dividend valuation with a constant growth model is similar to a growing perpetuity problem. Yield to maturity reflects the current market rate and it is the appropriate discount rate that matches the present value of the bond's cash flow stream and p..

  Develop a strategy to take advantage of the mispricing

Demonstrate why you believe the option is mispriced and develop a strategy to take advantage of the mispricing, assume you are correct with your estimate of historical volatility.

  Calculate the yield-to-maturity

Cellular International zero coupon bonds (par value $1,000) mature on April 21, 2020. Calculate the yield-to-maturity if an investor purchased one of these bonds on April 21, 2014, at a price of $650.

  Unattached converted garage

He also has an unattached converted garage that he has turned into an apartment, What will happen with the claim according to the HO-2 contract?

  Define the stated or quoted or nominal rate-periodic rate

Define the stated, or quoted, or nominal rate, the periodic rate and the effective annual rate.

  Lump sum in bank account that compounds interest quarterly

If he invests $1,000 today as a lump sum in bank account that compounds interest quarterly, what annual interest rate will he need in order to achieve his goal

  To assess the value of the firm stock

To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present.

  Compute bond price and bond prices and interest rate changes

Compute the price of a 6.3 percent coupon bond with 15 years left to maturity and a market interest rate of 10.4 percent.

  What are the initial cash flows and operating cash flows

Pantaloon Beer is considering opening a microbrewery near campus. What are the Initial Cash Flows in Year 0? What are the Operating Cash Flows in Year 2?

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