What is the standard deviation of the stock returns

Assignment Help Financial Management
Reference no: EM131333401

You find a certain stock that had returns of 15.4 percent, –22.7 percent, 28.7 percent, and 19.7 percent for four of the last five years. Assume the average return of the stock over this period was 13.4 percent.

What was the stock’s return for the missing year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Stock's return             %

What is the standard deviation of the stock’s returns? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation             %

Reference no: EM131333401

Questions Cloud

What was variance-standard deviation of returns over period : You’ve observed the following returns on Barnett Corporation’s stock over the past five years: –28.2 percent, 15.8 percent, 34.6 percent, 3.4 percent, and 22.4 percent. What was the arithmetic average return on the stock over this five-year period? W..
What is diversification and value for investors portfolios : How did the birth of online discount stock brokerages impact the Internet revolution? What is diversification and what is its value for investors' portfolios? Explain the relationship between the potential return on a common stock and the risk of tha..
What is the weighted average cost of capital for Eric : WACC. Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all debt funding scenario. He will borrow $2,000 from Wendy, who will charge him 6% on the loan. He will also borrow $1, 500 from Bebe, who will charge him 8% ..
Cost of preferred stock : Cost of preferred stock. Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $100 and a dividend rate of 6%. The stock is selling for $80 in the market. What is the cost of preferred stock for Kyle..
What is the standard deviation of the stock returns : You find a certain stock that had returns of 15.4 percent, –22.7 percent, 28.7 percent, and 19.7 percent for four of the last five years. Assume the average return of the stock over this period was 13.4 percent. What was the stock’s return for the mi..
Capital budgeting decisions of multinational companies : How can the following affect the capital budgeting decisions of multinational companies: What examples can you provide from your reading of business periodicals to support your ideas? Remember to think about both large and small firms.
The financial risks of participating : The financial risks of participating - or not participating in an ACO; (2) what aspects of an ACO might give rise to concerns for financial and accounting professionals; and (3) whether you think ACOs will afford participants profits.
Gains from trade-production possibilities frontiers : GAINS FROM TRADE—These questions require you to apply the so-called “gains from trade” model to corn and fish. So, the table below shows hypothetical endpoints on production possibilities frontiers (“PPFs”) for two federally recognized American India..
What is the required return on the firm equity : Primal Grains Bakery Ltd. has only two divisions: Gluten and Gluten-Free. You have the following information about the asset value and beta of each division. The risk free interest rate is 3% and the required return on the market portfolio is 12%. Th..

Reviews

Write a Review

Financial Management Questions & Answers

  How many tons of gravel-sand should be purchased each day

The Sureset Concrete Company produces concrete. Two ingredients in concrete are sand (costs $6 per ton) and gravel (costs $8 per ton). Sand and gravel together must make up exactly 75% of the weight of the concrete. Also, no more than 40% of the conc..

  Holistic holidays limited has an employment contract

Holistic Holidays Limited has an employment contract with Loretta Bloom, its newly hired CEO. The contract requires a lump sum payment of $1.5 million be paid to Ms. Bloom upon the successful completion of her first three years of service. How much m..

  It is possible to reduce risk of the portfolio by adding

It is possible to reduce risk of the portfolio by adding a ________ risk investment if it is ________ correlated with other investments.

  What amount will be in your account at end of four years

Quantitative Problem 1: You plan to deposit $2,200 per year for 4 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 4 years? Assum..

  What is the receivables turnover and annual credit sales

Evil Pop, Inc., has an average collection period of 50 days. Its average daily investment in receivables is $44,300. Assume 365 days per year. What is the receivables turnover? What are annual credit sales?

  Considering opening strip mining operation

Rearden Metals is considering opening a strip mining operation to provide some of the raw materials needed in producing Rearden metal. The initial purchase of the land and the associated costs of opening up mining operations will cost $100 million to..

  What is the 1 year forward interest rate on treasuries

What is the 1-year forward interest rate on Treasuries? - How would you commit today to borrowing $100,000 next year at this forward rate?

  Afford the truck

Jake wants to buy a new truck and he has saved $2,350 for a down payment and can make monthly payments of $575. The dealer will finance the truck over 60 months at 1.5% interest with monthly payments. Jack wants a truck costing $35,999; can Jake affo..

  Activities be performed by various marketing institutions

The marketing process does not take place automatically. It requires that certain marketing functions or activities be performed by various marketing institutions - and by consumers themselves. Discussion Name a product for which all eight marketing ..

  What is the present value of the future? amounts

(Present value?) What is the present value of the following future? amounts?

  Estimate the effect of a change in interest rates

How does that some observers contend that it is harder to estimate the effect of a change in interest rates on common stocks that on bonds.

  Explain the two components of interest rate risk

Explain the two components of interest rate risk Are they affected by the maturity of the bond? Say your parents give you money for a 5 year olds college education. Assuming you had no intention of using your money for anything other than that purpos..

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