What is the standard deviation of the stock returns

Assignment Help Financial Management
Reference no: EM131835384

You find a certain stock that had returns of 19 percent, −6 percent, 21 percent, and 17 percent for four of the last five years. The average return of the stock over this period was 13.92 percent.

What was the stock’s return for the missing year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)

Stock’s return %

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

Standard deviation %

Reference no: EM131835384

Questions Cloud

Why great depression appropriate time to use fiscal policy : Why was the Great Depression an especially appropriate time to use fiscal policy rather than just monetary policy alone?
Straight-line to zero over project five-year life : This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $100,000.
What is the projected net income : Prepare a pro forma income statement assuming a tax rate of 40 percent. What is the projected net income?
At what price should this bond trade : At what price should this bond trade? today, assuming a face value $1,000 and annual? coupons?
What is the standard deviation of the stock returns : What is the standard deviation of the stock’s returns? What was the stock’s return for the missing year?
What was the average real return on crash-n-burn’s stock : What was the average real return on Crash-n-Burn’s stock? What was the average nominal risk premium on Crash-n-Burn’s stock?
Important to firm long-term debt-paying ability : Discuss why profitability is important to a firm’s long-term debt-paying ability. Please cite an sources you use.
Bond makes semiannual coupon payments : If the yield to maturity on the bond is 10 percent, calculate the price of the bond assuming that the bond makes semiannual coupon payments.
How much can joe withdraw under each option : Joe is 60 years old. His IRA has accumulated $80,000 over the years. How much can Joe withdraw under each option?

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the net effect of this plan on the pretax profits

Determine the net effect of this plan on the pretax profits of Bimbo. Assume there are 365 days per year.

  What is the current share price

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a $12 per share dividend 10 years from today ..

  What is the NPV of the new app

Dave is considering investing in a new app for his mobile website. The initial cost is $100,000. However, Dave believes that the new app will generate more page views and thus more advertising revenue. Assume that the cash flows are realized at the e..

  How would you measure diversification between funds

Respond to the following client statement: a prospective client comes into your office looking for investment advice. The client feels that s/he is appropriately diversified because the portfolio currently holds six different growth mutual funds, hen..

  Present value higher or lower than the current stock price

Is the present value higher or lower than the current stock price?

  Assume opportunity cost

Assume an opportunity cost of 10%, what should you do under the trade credit terms, 2/10, net 45?

  Equity used is from retained earnings

Quinlan Enterprises stock trades for $52.50 per share. It is expected to pay a $2.50 dividend at year end (D1 = $2.50), and the dividend is expected to grow at a constant rate of 5.50% a year. The before-tax cost of debt is 7.50%, and the tax rate is..

  What is the payback period of this investment

What is the payback period of this investment? According to the NPV rule, should you make this movie?

  Residual dividend model-what will be its payout ratio

Welch Company is considering three independent projects, each of which requires a $5 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects is presented below: If Welch establishes its dividends from th..

  Events involving a recent purchase of inventory

Shany market recorded the following events involving a recent purchase of inventory

  What was the net income after-tax

Delta Ray Brands Corp. just completed their latest fiscal year. The firm had sales of $16,976,400. Depreciation and amortization was $846,300, interest expense for the year was $886,800, and selling general and administrative expenses totaled $1,447,..

  What is the flotation cost adjustment

What is the flotation cost adjustment that must be added to its cost of retained earnings?

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