Standard deviation of stock return

Assignment Help Basic Statistics
Reference no: EM131099676

Suppose that the return on a stock that you own is normally distributed with a mean of 11%. Furthermore, suppose that last year, the return on the stock was 5%. If your investment advisor tells you that there was only a 9% chance of getting a 5% return (or lower), what is the standard deviation of this stock's return? (please round your answer to 2 decimal places)

Reference no: EM131099676

Questions Cloud

The current market value of the firm equity and debt : - 1 million shares of common stock. The shares are priced such that the firm's P/E multiple is 10, i.e. the price per share is 10 times the earnings per share.
Write a concise summary of the themes : Write a concise summary of the themes emerging from your research on the characteristics of tamper-resistant devices and the similarities and differences among them.
Describes what the entire paragraph is about : A topic-sentence outline is very similar to a traditional outline. The only difference is the inclusion of complete sentences rather than key terms. The topic sentences should serve the same purpose as a topic sentence in a paragraph-describes w..
Determine w1, rf, and rd : Assuming R1 = 500 Ω and L1 = 0:18 μm, determine W1, RF, and RD.
Standard deviation of stock return : If your investment advisor tells you that there was only a 9% chance of getting a 5% return (or lower), what is the standard deviation of this stock's return? (please round your answer to 2 decimal places)
Effectiveness of commercials during the super bowl : Suppose an advertising agency is conducting a survey concerning the effectiveness of commercials during the Super Bowl.
Difference between einsteins iq and the mean : IQ scores have a mean of 100 and a standard deviation of 16. Albert Einstein reportedly had an IQ of 160. a. What is the difference between Einsteins IQ and the mean?
The required rate of return for this stock : Sugar Land Co. is a fast growing firm and no dividend will be paid on the stock over the next 9 years. The company then will pay a $12 dividend per share in year 10 and will increase the dividend by 5 percent forever.
Provide a reference to the article you found : Provide a reference to the article you found. Is there anything missing from the set of barriers in your list? If so, what? How are the barriers tied to risks versus rewards for the organization?

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

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