Question
In: Finance
A stock had annual returns of 5.6%, 10.4%, -6.7%, 8.1%, and -5.9%. What was its arithmetic...
A
stock had annual returns of 5.6%, 10.4%, -6.7%, 8.1%, and -5.9%.
What was its arithmetic average annual return during that period?
Answer in percentage, rounded to two decimal places.
Same stock as in question 6.1: Annual returns of 5.6%, 10.4%,
-6.7%, 8.1%, and -5.9%. What was its compound average annual return
during that period? Answer in percentage, rounded to two decimal
places.
Same stock as in question 6.1: Annual returns of 5.6%, 10.4%,
-6.7%, 8.1%, and -5.9%. What was its total return during that
period? Answer in percentage, rounded to two decimal places.
Same stock as in question 6.1: Annual returns of 5.6%, 10.4%,
-6.7%, 8.1%, and -5.9%. What was its volatility (sample standard
deviation) during that period? Answer in percentage, rounded to two
decimal places.
Solutions
Expert Solution
FOR COMPOUNDED AVERAGE ANNUAL RETURN, ADD RETURN TO 100,
THEN TAKE 5TH ROOT AND THEN SUBTRACT 100
jeff jeffy answered 1 year agoRelated Solutions
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A stock records the following returns over the last 6 months. What are the arithmetic returns...
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Which stock would you choose? Why?
YEAR
Returns of the Stock
1
R
Variances
σ2
YEAR
Returns of the Stock
2
R
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6.31%
1...
A stock records the following returns over the last 6 months. What are the arithmetic returns...
A stock records the following returns over the last 6
months.
What are the arithmetic returns for the stocks?
What are the geometric returns for the stocks?
What are the variances for the stocks?
What are the standard deviations for the stocks?
Compute the coefficient of variation of stocks.
Which stock would you choose? Why?
YEAR
Returns of the Stock
1
R
Variances
σ2
YEAR
Returns of the Stock
2
R
Variances
σ2
1
6.31%
1...
A stock records the following returns over the last 6 months. What are the arithmetic...
A stock records the following returns over the last 6
months.
What are the arithmetic returns for the stocks?
What are the geometric returns for the stocks?
What are the variances for the stocks?
What are the standard deviations for the stocks?
Compute the coefficient of variation of stocks.
Which stock would you choose? Why?
YEAR
Returns of the Stock
1
R
Variances
σ2
YEAR
Returns of the Stock
2
R
Variances
σ2
1
6.31%...
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Q6) A stock had the following annual returns: 5.10% , 20.17% ,
-24.68% , and 26.60%. Compute the following for the stock:
a) Expected Return :
b) Variance :
c) Standard Deviation :
What is the arithmetic mean for the following stock returns: R1=6.3%, R2=4%, R3=7.2%?
You bought a bond for $950 1 year ago. You have received a
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Calculate annual arithmetic rate of return and annual geometric rate of return of stock A and...
Calculate annual arithmetic rate of return and annual geometric
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The table below shows annual returns for stocks of companies X and Y. Calculate the arithmetic...
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Returns
Year
X
Y
1
11 %
19 %
2
29
40
3
18
-9
4
-19
-23
5
20
48
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(a)
The arithmetic average return of company X's stock is:
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(b)
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A) 17.5%
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Q:
A company has a target capital structure of 55% common
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is 8%. The relevant tax rate is 30%. What is the
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Weighted Average
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