What is the average return of the stock over the four years

Assignment Help Financial Management

Reference no: EM13947062

Over the past four years, a stock produced returns of 15 percent, 6 percent, 11 percent, and 22 percent, respectively. A) What is the average return of the stock over the four years? B) What is it's standard deviation? C) What range of returns would you expect to see 68 percent of the time?

Reference no: EM13947062

Questions Cloud

An investment that pays the same amount at the end : An investment that pays the same amount at the end of each year for a fixed amount of time is called __________. A. an annuity due B. a perpetuity C. an excess cash flow D. an ordinary annuity

Calculate the company cost of capital : The market value of Charter Cruise Company's equity is $15 million and the market value of its debt is $5 million. If the required rate of return on the equity is 20% and that on its debt is 8%, calculate the company's cost of capital. (Assume no tax..

What is the geometric average return : A stock has produced returns of 16.6 percent, 3.4 percent, 11.7 percent, and -9.2 percent over the past four years, respectively. What is the geometric average return?

The shorter the time period that funds are invested : The shorter the time period that funds are invested, the greater the future value, so long as the interest rate is positive. The lower the discount rate that funds are invested at, the greater the future value.

What is the average return of the stock over the four years : Over the past four years, a stock produced returns of 15 percent, 6 percent, 11 percent, and 22 percent, respectively. A) What is the average return of the stock over the four years? B) What is it's standard deviation? C) What range of returns would ..

What is the present value of the interest payments on bond : Investment banks will oftentimes "split" the interest and principal payments on US government bonds into two parts and sell each part separately. Consider a vanilla government bond with 30 years to maturity, a coupon rate of 10 percent, a face value ..

What is the amount of the next dividend : Crazee Enterprises Corporation just paid a dividend and it expects that dividend to grow by 10 percent for the next three years. After that, the dividend is expected to grow at a constant rate of 5 percent in perpetuity. If the company's stock is cur..

Calculate the expected return on the portfolio : Florida Company (FC) and Minnesota Company (MC) are both service companies. Their stock returns for the past three years were: FC: -5%, 15%, 20%; MC: 8%, 8%, 20%. If FC and MC are combined into a portfolio with 50% of the funds invested in each stock..

What is the NPV of this investment : Rocky Mountain Lumber Company is considering purchasing a new wood saw that costs $50,000. The saw will generate revenues of $100,000 per year for four years. Rocky Mountain’s tax rate is 34 percent, and its opportunity cost of capital is 10 percent...

User Account

All Pages