Calculate the average return, Financial Econometrics

The  expected  return  and  risk  involved  in  making  an  investment  are important  factors  considered  by  investors.  The  expected  return  of  a business can be influenced by many factors. Past performance is considered to reflect expected future performance and an equal probability of 25% is assumed for all returns. Based on the analysis of past returns and forecasting, the following information is available for returns on two shares

listed on the stock exchange:

Year

Mazebe

Baduna

2009

0.20

0.16

2010

0.28

0.12

2011

0.36

0.10

2012

0.12

0.18

Required:

1 Calculate the average return for each of the two shares.

2 Calculate the risk involved by use of the standard deviation of each of the two shares.

3 Calculate the co-efficient of variation of each of the two shares.

Posted Date: 4/1/2013 2:52:01 AM | Location : United States







Related Discussions:- Calculate the average return, Assignment Help, Ask Question on Calculate the average return, Get Answer, Expert's Help, Calculate the average return Discussions

Write discussion on Calculate the average return
Your posts are moderated
Related Questions
Mary has a weekly allowance of $24 to spend on soda and coffee.  Let 40 cups be the maximum amount of soda she can buy for the money.  Let $.40 be the price of 1 cup of coffee.  As

Working capital cycle measures the time between paying for goods supplied to you and final receipt of cash to you from their sale. It is desirable to keep this cycle as short as po

Question 1 : Assuming that you are appointed as a consultant to assess the Tertiary education sector in Mauritius in order to do a due diligence on the potential f

I need to conduct bivariate tests using two regime threshold cointegration for nonlinear relations. I have the code but it will nee some modification. Is there someone can help?

Working capital cycle for a trade Inventories days (time inventories are held before being sold)   +   Trade receivables days (how long the credit

What is the relationship between the arithmetic average and the geometric average return for each stock and the S&P 500? Explain. Compare the standard deviations for each of the

Q. What are Trade receivable days? Year-end trade receivables/Credit sales (or turnover)] * 365 days This is average length of time taken by customers to pay. A long average

Question If the economy booms, RTF, Inc. stock is expected to return 10%. If the economy goes into a recessionary period, then RTF is expected to only return 4%. The probabilit

Below is information about the spot and forward rates for three currencies against the US dollar (USD): (a) Critically discuss the interest rate parity and covered interest

An entity's working capital financing policy is to finance working capital using short-termfinancing to fund all the fluctuating current assets as well as some of the permanent par