What is the standard deviation of return for a stock with annual return of 13%, 9%,...

Question

Question

business finance

Answer 1

Answer #1

Solution :- Returns = 13% , 9% , -12% , 10%

Average Return = ( 13% + 9% - 12% + 10% ) / 4 = 20% / 4 = 5%

19 fix B с D E F A 1 Solution :- 2 3 4 Year 1 2 5 6 7 Returns 13.00% 9.00% -12.00% 10.00% D=(R-AR) 8.00% 4.00% -17.00% 5.00%

Variance = D * D / ( n - 1 ) = 3.94% / ( 4 - 1 ) = 1.3133%

Standard Deviation = ( Var )^1/2 = ( 1.3133% )^1/2 = 11.46%

If there is any doubt please ask in comments

Thank you please rate

Answer 2

Similar Homework Help Questions

Question 10 (2 points) What is the standard deviation of return for a stock with annual...

Question 10 (2 points) What is the standard deviation of return for a stock with annual return of 13%, 9%, -12%, 10% over the last four years. AJ Question 12 (2 points) 1. Jack Welch bought a bond at $980 and sold it for $ 1001 after a year. He received a coupon payment of $ 20 in that year. What is his rate of return on his bond investment? AM
1) A stock has generated an annual average return of 9.5% with a standard deviation of...

1) A stock has generated an annual average return of 9.5% with a standard deviation of 40.7% during the last 10 years. If the average risk-free rate was 1.7%, what was this stock's Sharpe Ratio? Round to two decimal places. 2) The standard deviation of a stock's annual returns is 40.4%. The standard deviation of market returns is 24.3%. If the correlation between the returns of the stock and the market is 0.3, what is this stock's beta? Round to...
A stock has an annual return of 13 percent and a standard deviation of 56 percent. What is the sm...

A stock has an annual return of 13 percent and a standard deviation of 56 percent. What is the smallest expected gain over the next year with a probability of 5 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Smallest expected gain % b. Does this number make sense? Yes No

last chance A stock has generated an annual average return of 8.0% with a standard deviation...

last chance A stock has generated an annual average return of 8.0% with a standard deviation of 45.0% during the last 10 years. If the average risk-free rate was 1.6%, what was this stock's Sharpe Ratio? Round to two decimal places. Numeric Answer: 14.22 You are incorrect 14.22
xyz stock has an average annual return of 15% with an annual return standard deviation of...

xyz stock has an average annual return of 15% with an annual return standard deviation of 50%. what loss level can we expect over a two-year investment horizon with a probability of 17%? A) -35.00% B) -28.12% C) -25.05% D) -40.71%
1. Bonds have an expected return of 7% and an annual standard deviation of 10% and...

1. Bonds have an expected return of 7% and an annual standard deviation of 10% and the stock market has an expected return of 12% and an annual standard deviation of 25%. Assume that the correlation between bond returns and stock returns is 0.5. You choose to invest 75% in stock market and 25% in bonds. The expected annual return of your portfolio is ____________% 2. Bonds have an expected return of 7% and an annual standard deviation of 10%...

. A stock has an annual return of 12 percent and a standard deviation of 58...

. A stock has an annual return of 12 percent and a standard deviation of 58 percent. What is the smallest expected gain over the next year with a probability of 5 percent? (Do not round intermediate calculations. Round the z-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places.) b. Does this number make sense?
You are analyzing the historical performance of a stock. The annual returns for the last ten...

You are analyzing the historical performance of a stock. The annual returns for the last ten years are shown below. Year Ann Ret 2018 12% 2017 9% 2016 ‐5% 2015 3% 2014 ‐13% 2013 6% 2012 20% 2011 0% 2010 ‐6% 2009 14% Calculate the average annual return, the variance and standard deviation of this stock over the ten‐year period.
The average historical annual return on a stock is 7.16%, with a standard deviation of 44.35%....

The average historical annual return on a stock is 7.16%, with a standard deviation of 44.35%. What is the 97.5% annual value-at-risk (VaR) on a $1 million investment in this stock? Select one: a. -$371,900 b. -$443,000 c. -$815,400 d. -$975,000 e. -$1,000,000

Question 27 2 pts Bonds have an expected return of 7% and an annual standard deviation...

Question 27 2 pts Bonds have an expected return of 7% and an annual standard deviation of 10% and the stock! market has an expected return of 12% and an annual standard deviation of 25%. Assume that the correlation between bond returns and stock returns is 0.5. You choose to invest 75% in stock market and 25% in bonds. The expected annual standard deviation of your portfolio is Do not put the % sign in your answer and round to...