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
What are the four basic elements found in all economic system?

The demand equation for Good Y is given by             P = 900/q - 0.48q + 100       q > 0 In this question use derivatives to explore the relationship between the demand for

Q. Show example on aggressive working capital policy? With an aggressive working capital policy, a company would hold minimal levels of inventories in order to minimise costs.

A new capital investment that will cost $2.5 million and will generate perpetual net cash flows of $400,000 a year. Investors could expect to earn 8 percent elsewhere while taking

How can economies of scale be a characteristics that makes for a good industry (please be specific) and what industry (besides automobiles) do you consider to be a "good industry"

Question 1: (a) Describe clearly the main theories of interest rate determination. (b) Critically assess the relationship between interest rate and Money supply. Questio

Q. Calculate ADs working capital cycle? AD, a manufacturing entity, has the following balances at 30 April 2005: Extract from financial statements:      $000 Trade receiv

Question 1: (a) As a small island economy , Mauritius had to face a number of constraints in order to transform itself from mono-cop economy into a well diversified midd

The table below shows the summary of Balance of Payments in New Zealand. Note: Net values are given as credits + debits with correct signs in the balance of payment table.

Financing Throughout the life of this Company, Dwight is proud of the fact that he has never before required any outside financing--other than his line of credit. The line of