You find a certain stock that had returns of 14 percent, -27 percent, 19 percent, and...

You find a certain stock that had returns of 14 percent, -27 percent, 19 percent, and 21 percent for four of the last five years, respectively. What is the average return of the stock over this period? What is the standard deviation of the stock's returns?

Expert Solution

Answer

1.

Average = {14 + (27) + 19 + 21} / 4

Average = 6.75%

2.

X	A = X - M	A^2
	Let’s assume M = 19
14	(5)	25
(27)	(46)	2116
19	-	0
21	2	4
Total		2145

Standard Deviation = Under root of (A^2 / n-1)

= Under root of (2145 / 4-1)

Standard Deviation = 26.74

Dear Student, if u have any query, plz feel free to reach me.

ekkarill92 answered 1 year ago

A stock had returns of 8 percent, –8 percent, 3 percent, and 14 percent over the...

A stock had returns of 8 percent, –8 percent, 3 percent, and 14 percent over the past 4 years. What is the standard deviation of this stock for the past four years? Multiple choice 16.1 percent 4.7 percent 9.3 percent 4.3 percent

A stock has had returns of -26 percent, 12 percent, 34 percent, -8 percent, 27 percent,...

A stock has had returns of -26 percent, 12 percent, 34 percent, -8 percent, 27 percent, and 23 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 10.33% Arithmetic average return Geometric average return

A stock produced returns of 14 percent, 17 percent, and −1 percent over three of the...

A stock produced returns of 14 percent, 17 percent, and −1 percent over three of the past four years, respectively. The arithmetic average for the past four years is 6 percent. Show your work here (please be as detailed and organized as possible): What is the missing return (i.e., the return in the fourth year)? What is the geometric average return over the four years? What is the standard deviation of returns of the stock? (Show work below please).

A stock had returns of 16.39 percent, ?6.31 percent, and 23.51 percent for the past three...

A stock had returns of 16.39 percent, ?6.31 percent, and 23.51 percent for the past three years. What is the standard deviation of the returns?

A stock had returns of 10 percent, -4 percent, 4 percent, and 18 percent over the...

A stock had returns of 10 percent, -4 percent, 4 percent, and 18 percent over the past four years. What is the standard deviation of these returns?

A stock had returns of 5 percent, 9 percent, 11 percent, −8 percent, and 6 percent...

A stock had returns of 5 percent, 9 percent, 11 percent, −8 percent, and 6 percent over the past five years. What is the standard deviation of these returns? Multiple Choice 11.14 percent 7.44 percent 8.44 percent 4.60 percent 5.97 percent

A stock had returns of 15 percent, 2 percent, 10 percent, 12 percent, -7 percent, and...

A stock had returns of 15 percent, 2 percent, 10 percent, 12 percent, -7 percent, and -3 percent over the past six years. What is the geometric average return for this time period?

A stock had returns of 19.02 percent, 22.72 percent, −16.16 percent, 9.44 percent, and 28.51 percent...

A stock had returns of 19.02 percent, 22.72 percent, −16.16 percent, 9.44 percent, and 28.51 percent for the past five years. What is the standard deviation of the returns?

A stock had returns of 19.02 percent, 22.72 percent, −16.16 percent, 9.44 percent, and 28.51 percent...

A stock had returns of 19.02 percent, 22.72 percent, −16.16 percent, 9.44 percent, and 28.51 percent for the past five years. What is the standard deviation of the returns?

Over the past four years, a stock produced returns of 14 percent, 22 percent, 6 percent,...

Over the past four years, a stock produced returns of 14 percent, 22 percent, 6 percent, and -19 percent. What is the approximate probability that an investor in this stock will not lose more than 30 percent nor earn more than 41 percent in any one given year? How would you calculate this in excel?

Question

You find a certain stock that had returns of 14 percent, -27 percent, 19 percent, and...

Solutions

Expert Solution

Related Solutions

A stock had returns of 8 percent, –8 percent, 3 percent, and 14 percent over the...

A stock has had returns of -26 percent, 12 percent, 34 percent, -8 percent, 27 percent,...

A stock produced returns of 14 percent, 17 percent, and −1 percent over three of the...

A stock had returns of 16.39 percent, ?6.31 percent, and 23.51 percent for the past three...

A stock had returns of 10 percent, -4 percent, 4 percent, and 18 percent over the...

A stock had returns of 5 percent, 9 percent, 11 percent, −8 percent, and 6 percent...

A stock had returns of 15 percent, 2 percent, 10 percent, 12 percent, -7 percent, and...

A stock had returns of 19.02 percent, 22.72 percent, −16.16 percent, 9.44 percent, and 28.51 percent...

A stock had returns of 19.02 percent, 22.72 percent, −16.16 percent, 9.44 percent, and 28.51 percent...

Over the past four years, a stock produced returns of 14 percent, 22 percent, 6 percent,...