What is the standard deviation of returns

Assignment Help Financial Management
Reference no: EM131459091

A security had annual returns of 16 percent, 8 percent, 6 percent, and 13 percent over the last four years, respectively.

1. What is the standard deviation of these returns?

2. And what does it imply? (That is, what is its 95% confidence interval?)

Reference no: EM131459091

Questions Cloud

The current spot exchange rate : The current spot exchange rate is 3.75 BRL per US dollar, the one-year forward rate is 3.95, and the one-year US interest rate is 2%.
Superior capital structure choice of perfect capital market : Which is the superior capital structure choice of a perfect capital market?
How financial intermediation improves our standard living : Explain the role of an Investment bankers/ IPO process ? Explain how financial intermediation improves our standard living?
What is after-tax cost of capital for debt financing : The firm's marginal tax rate is 40%. What is the after-tax cost of capital for this debt financing?
What is the standard deviation of returns : A security had annual returns of 16 percent, 8 percent, 6 percent and 13 percent over the last four years, respectively. What is standard deviation of returns.
Planning a cash flow budget for a company : What impact does that have on planning a cash flow budget for a company?
Current rate and return on assets : Compare and contrast your company's ratios to industry and competitor standard ratios obtained from Yahoo Finance, Morningstar, MotleyFool, Macroaxis
Who are the stakeholders involved in corporate governance : Who are the stakeholders involved in corporate governance? What are benefits to these stakeholders? What may be a consequence of lack of corporate governance.
Financial statement and internal financial controls of intel : What type of audit opinion was given for the financial statements and the internal financial controls of Intel?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the beta of a four-stock portfolio

What is the beta of a four-stock portfolio including 10% of Stock A with a beta of 4, 20% Stock B with a beta of 3, 30% Stock C with a beta of 2, and 40% Stock D with a beta of 1?

  Returns between willow stock and sky diamond stock

The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0860. The variance of Willow is 0.1440, and the variance of Sky Diamond is 0.1020. What is the correlation coefficient between the returns of the two stocks?

  No-load mutual fund with an annual expense ratio

You are considering investing in a no-load mutual fund with an annual expense ratio of .8% and an annual 12b-1 fee of .95%. You could also invest in a bank CD paying 6.5% per year. What minimum annual rate of return must the fund earn to make you bet..

  Treasury note with annual coupon rate

Consider a 2-year Treasury note with annual coupon rate 4% and the coupons are paid semiannually. The continuously compounded bond yield is 2% per year. What is the bond price?

  Capital structure will there be change in the cost of debt

The McGee Corporation finds it is necessary to determine its marginal cost of capital. McGee’s current capital structure calls for 50 percent debt, 25 percent preferred stock, and 25 percent common equity. Initially, common equity will be in the form..

  Finds an arbitrage-what is the net cash flow in one year

Suppose that the annual interest rate is 2.0 percent in the United States and 4 percent in Germany, and that the spot exchange rate is $1.60/€ and the forward exchange rate, with one-year maturity, is $1.58/€. Assume that an arbitrager can borrow up ..

  Explain the concepts of terminal value

Explain the concepts of terminal value and modified internal rate of return as they are applied to the management of medical projects. Provide a specific example related to your own work or professional interests.

  What is the value of the lump sum payment

You have just won the lottery and have the option of receiving $1,000,000 payments at the beginning of each year for the next 20 years or a lump sum payment today. If the interest rate is 5%, what is the value of the lump sum payment?

  The percent price change due to both duration and convexity

A 5.5% coupon bearing bond that pays interest semi-annually has a yield to maturity of 4.8% per year. This bond has a duration of 10 years and a convexity of 157. If the market yield decreases 60 basis points, calculate an estimate of the percent pri..

  Higher plow back ratio means ratio

All else the same, a higher plow back ratio means a(n) _________P/E ratio. You wish to earn a return of 10% on each of two stocks,A and B.Each of the stocks is expected to pay a dividend of $4 in the upcoming year. The expected growth rate of dividen..

  What is bobs cost of preferred stock

Bobs stuff INC has prefered stock with a stated dividend of $3.24, which is currently trading at $25 per share. Bob beleives the company can issue additional stocks at that price net. What is Bobs cost of preferred stock?

  Credit cards with tiered interest rate charge cardholders

Credit cards with a tiered interest rate charge cardholders who

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