Question
In: Finance
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 4 percent,...
|
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 4 percent, -12 percent, 24 percent, 20 percent, and 15 percent. |
| Requirement 1: |
| What was the average return on Crash-n-Burn’s stock over this five year period? |
| (Click to select) 10.20% 12.75% 12.14% 11.12% 8.26% |
| Requirement 2: | |
| (a) |
What was the variance of Crash-n-Burn’s returns over this period? (Do not round intermediate calculations.) |
| (Click to select) 0.01682 0.02102 0.02183 0.01913 0.01703 | |
| (b) |
What was the standard deviation of Crash-n-Burn’s returns over this period? (Do not round intermediate calculations.) |
| (Click to select) 17.25% 12.97% 14.50% 14.78% 11.74% |
Solutions
Expert Solution
Please let me know in case you have any queries and I will be happy to assist you.
jeff jeffy answered 3 years agoRelated Solutions
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 11 percent,...
You’ve observed the following returns on Crash-n-Burn Computer’s
stock over the past five years: 11 percent, –11 percent, 18
percent, 23 percent, and 10 percent. Suppose the average inflation
rate over this period was 2 percent and the average T-bill rate
over the period was 3.1 percent.
a.
What was the average real risk-free rate over this time period?
(Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
b.
What...
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 11 percent,...
You’ve observed the following returns on Crash-n-Burn Computer’s
stock over the past five years: 11 percent, –10 percent, 19
percent, 18 percent, and 10 percent. Suppose the average inflation
rate over this period was 2.7 percent and the average T-bill rate
over the period was 4.8 percent. a. What was the average real
risk-free rate over this time period? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.) b. What...
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 11 percent,...
You’ve observed the following returns on Crash-n-Burn Computer’s
stock over the past five years: 11 percent, –10 percent, 19
percent, 18 percent, and 10 percent.
a.
What was the arithmetic average return on the company’s stock
over this five-year period? (Do not round intermediate
calculations and enter your answer as a percent rounded to 1
decimal place, e.g., 32.1.)
b-1.
What was the variance of the company’s returns over this
period? (Do not round intermediate calculations and round
your answer...
1) You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 2...
1) You’ve observed the following returns on Crash-n-Burn
Computer’s stock over the past five years: 2 percent, -9 percent,
29 percent, 14 percent, and 13 percent. The average inflation rate
over this period was 3.2 percent and the average T-bill rate was
4.95 percent.
Requirement 1:
What was the average real return on Crash-n-Burn’s stock?
13.31%
6.08%
6.72%
7.03%
6.40%
Requirement 2:
What was the average nominal risk premium on Crash-n-Burn’s
stock?
0.64%
4.41%
4.855
3.93%
3.44
2) A stock...
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 7 percent,...
You've observed the following returns on Crash-n-Burn Computer's
stock over the past five years: 7 percent, -15 percent, 19 percent,
37 percent, and 18 percent. Suppose the average inflation rate over
this period was 3.81 percent and the average T-bill rate over the
period was 4.62 percent. What was the average real
risk premium over this time period?
(Enter your answer as a percentage, omit the "%" sign in
your response, and round your answer to 2 decimal places. For...
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 9 percent,...
You've observed the following returns on Crash-n-Burn Computer's
stock over the past five years: 9 percent, -15 percent, 21 percent,
33 percent, and 17 percent. Suppose the average inflation rate over
this period was 3.63 percent and the average T-bill rate over the
period was 4.13 percent. What was the average real risk premium
over this time period?
[Hint: Step 1: Calculate the average real rate of return for
Crash-n-Burn Computer. Step 2: Calculate the average real rate of
return...
You have watched the following returns on Crash-n-Burn Computer’s stock over the past five years: 16...
You have watched the following returns on Crash-n-Burn
Computer’s stock over the past five years: 16 percent, –5 percent,
19 percent, 13 percent, and 10 percent.
a.
What was the arithmetic average return on the company’s stock
over this five-year period? (Do not round intermediate
calculations and enter your answer as a percent rounded to 1
decimal place, e.g., 32.1.)
b-1.
What was the variance of the company’s returns over this
period? (Do not round intermediate calculations and round
your...
You’ve observed the following returns on Bennington Corporation’s stock over the past five years: 17 percent,...
You’ve observed the following returns on Bennington
Corporation’s stock over the past five years: 17 percent, −4
percent, 20 percent, 12 percent, and 10 percent.
a. What was the arithmetic average return on the company's stock
over this five-year period? (Do not round intermediate calculations
and enter your answer as a percent rounded to 1 decimal place,
e.g., 32.1.)
b-1. What was the variance of the company's stock returns over
this period? (Do not round intermediate calculations and round your...
You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 17 percent,...
You’ve observed the following returns on Yasmin Corporation’s
stock over the past five years: 17 percent, –15 percent, 19
percent, 29 percent, and 10 percent.
a. What was the arithmetic average return on the
company's stock over this five-year period? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 1 decimal place, e.g., 32.1.)
Average return
%
b-1 What was the variance of the company's stock
returns over this period? (Do not round intermediate
calculations...
1a. You’ve observed the following returns on Boca Inc’s stock over the past five years: 7...
1a. You’ve observed the following returns on Boca Inc’s stock
over the past five years: 7 percent, ?13 percent, 21 percent, 34
percent, and 15 percent. What was the arithmetic average return on
Crash-n-Burn’s stock over this five-year period? What was the
variance of Crash-n-Burn’s returns over this period? The standard
deviation?
1b. A stock has had the following year-end prices and
dividends:
Year
Price
Dividend
1
$51.50
-
2
59.32
$0.65
3
64.13
0.70
4
57.86
0.77
5
65.19...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Church Company completes these transactions and events during March of the current year (terms for all...
- Question # 5. a. Pretty Good Privacy (PGP) is broadly used to secure email communication. Explain...
- The correlation between X and Y ______________. Question options: measures the variation around the predicted regression...
- Will iron(III) hydroxide precipitate from a pH = 1.00 solution with [Fe3+] = 1.0 x 10-5?...
- What do you believe happens during the final scene of the story between the brothers at....
- A 5.171 g sample of a solid, weak, monoprotic acid is used to make a 100.0...
- 1. Creep is one of deformation that occurred in concrete structure. Give one example that can...
ADVERTISEMENT