What is standard deviation of the stocks returns

Assignment Help Financial Management

Reference no: EM131084205

You find a certain stock that had returns of 14 %, -27 %, 19 %, and 21 % for four of the last five years, respectively. The average return of the stock over this period was 9.5 %. What is the standard deviation of the stock's returns? (The answer should be 20.59 but I don't understand how you get to that answer)

Reference no: EM131084205

Questions Cloud

What is the process capability : A manufacturer of automobile headlamps tests 400 samples each day. The non-conformities are counted as scratches, circuit breaks etc. These defects are corrected before sending the headlamps to customers. Given the following information, create and g..

What is the price range of houses that they should consider : The Johnsons have accumulated a nest egg of $50,000 that they intend to use as a down payment toward the purchase of a new house. what is the price range of houses that they should consider?

What is the rate of return on one-year risk-free security : The spot rate between Japan and the U.S. is ¥100.37 = $1, while the one-year forward rate is ¥99.97 = $1. A one-year risk-free security is the U.S. is the yielding 3.8%. What is the rate of return on a one-year risk-free security in Japan assuming th..

Determine the effect of its inventory turnover ratio : Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2013 sales (all on credit) were $152,000 and its cost of goods sold was 75% of sales. It turned over its..

What is standard deviation of the stocks returns : You find a certain stock that had returns of 14 %, -27 %, 19 %, and 21 % for four of the last five years, respectively. The average return of the stock over this period was 9.5 %. What is the standard deviation of the stock's returns?

What is the aftertax cost of debt : Jiminy's Cricket Farm issued a 30-year, 7.4 percent semiannual bond 9 years ago. The bond currently sells for 93 percent of its face value. The book value of this debt issue is $92 million. What is the aftertax cost of the zero coupon bond? What is t..

The firm expects to maintain capital structure : Badger Corp. has an issue of 6% bonds outstanding with 6 months left to maturity. The bonds are currently priced at $989, and pay interest semiannually. The firm's marginal tax rate is 40%. The estimated risk premium between the company's stock and b..

What is the price of the convertible bond : The bonds of Generic Labs Inc. Have a conversion premium of $70. Their conversion price is $25. The common stock price is $22.50. What is the price of the convertible bond?

Net present value of project if the required rate of return : A project costing $6,200 initially should produce cash inflows of $2,860 a year for three years. After the three years, the project will be shut down and will be sold at the end of Year 4 for an estimated net cash amount of $3,300. What is the net pr..

User Account

All Pages