What is the standard deviation of these returns

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1. A stock had returns of 10 percent, -6 percent, 6 percent, and 14 percent over the past four years. What is the standard deviation of these returns?

8.6 percent

8.1 percent

7.6 percent

7.2 percent

9.0 percent

2. P&G is an all equity firm that has 90,000 shares of stock outstanding. The company is in the process of borrowing $100,000 at 8 percent interest to repurchase 5,000 shares of the outstanding stock. What is the value of this firm if you ignore taxes?

A. $6.0 million

B. $2.5 million

C. $5.0 million

D. $1.8 million

E. $5.5 million

Reference no: EM131995436

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