What is the standard deviation of these returns

Assignment Help Financial Management
Reference no: EM13765649

A stock had annual returns of 11 percent, 18 percent, 21 percent, 20 percent, and 34 percent over the past five years.

a) What is the average of these returns?

b) What is the standard deviation of these returns?

Reference no: EM13765649

Questions Cloud

Consists of the price of the new equipment plus : Newcastle Coal Company is considering a project that requires an investment in new equipment of $3,800,000, with an additional $190,000 in shipping and installation costs. Newcastle estimates that its accounts receivable and inventories need to incre..
Target capital structure that consists of debt and equity : A company has a target capital structure that consists of 40 percent debt and 60 percent equity. The company's capital budget for next year is $10 million. The company expects a net income of $8 million.   The company's cost of capital is 12 percent...
Developing materials for traditional photographic methods : Kodak used to primarily produce and distribute photographic paper and developing materials for traditional (i.e., non digital) photographic methods. A sizable portion of their business was home photography. Since they were one of the few suppliers of..
What is the book value of the equipment : The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $300,000. What is the book value of the equipment?
What is the standard deviation of these returns : A stock had annual returns of 11 percent, 18 percent, 21 percent, 20 percent, and 34 percent over the past five years. What is the average of these returns? What is the standard deviation of these returns?
Market research spent to evaluate customer demand : Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth retail store across town from its most successful retail outlet. T..
Considering investing in one of two economies : You are a risk-averse investor who is considering investing in one of two economies. The expected return and volatility of all stocks in both economies is the same. In the first economy, all stocks move together in good times all prices rise together..
Suppose the risk-free interest rate : Suppose the risk-free interest rate is 4% and the market portfolio has an expected return of 10% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.32. What is its expected return?
Strayer oracle server : The Strayer Oracle Server may be used to test and compile the SQL Queries developed for this assignment. Your instructor will provide you with login credentials to a Strayer University maintained Oracle server.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the bond price if priced with the assumption

Callable bond. Corso Books has just sold a callable bond. It is a thirty year semi-annual bond with an annual coupon rate of 6% and $1,000 par value. Investors, however, can call the bond starting at the end of 10 years. If the yield to call on this ..

  What would your portfolios new beta

Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.85. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and to u..

  Discuss the method of determining the fair value for forward

International business activities are inherently more attractive to large companies in mature markets than to small high growth US companies. True or false. Why or why not. Discuss the method of determining the “fair value” for forward, futures and o..

  Annual sales figure when evaluating this project

Travel America Coaches currently sells 15,000 motor homes per year at $94,000 each, and 1,500 luxury motor coaches per year at $159,000 each. The company wants to introduce a low-range camper to fill out its product line; it hopes to sell 6,000 of th..

  What are expectations on the future market conditions

Construct the table and the diagram showing the profit-loss (as a function of the terminal futures price) of each component position and of the combined position of your portfolio - Calculate the current value, the delta, the ga..

  Describe the purpose primary financial statements

Describe the purpose of each of the five primary financial statements.

  Stock dropped substantially after the announcement

Conagra just announced an earnings increase of 2%, but the price of the stock dropped substantially after the announcement. Is there a rational explanation for this result?

  Best estimate of the firms cost of equity

If a firm has a beta of 90% and a market risk premium of 7% and T-bills yield 3.5%. The most recent dividend was $1.80 per share and dividends are expected to grow at a 5% annual rate indefinitely. If the stock sells for 47% per share, what is your b..

  Options on microsoft stock-compute the gross profit

Consider options on Microsoft stock. Suppose that there are call options with a strike price of $10 and put options with a strike price of $10, both with the expiration date of January 16th.

  Measured by standard deviation of returns

The expected rate of return for stock A, stock B, and stock C are X%, 20%, and 14%, respectively. The risk (as measured by standard deviation of returns) of stock A, stock B, and stock C are 43%, 62%, and 52%, respectively.

  Convert infinite series of asset purchases into perpetuity

The best approach to convert an infinite series of asset purchases into perpetuity is known as

  Comparison of market yields on securities

This is a comparison of market yields on securities, assuming all characteristics except maturity are the same.

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