Sample standard deviation of the above returns

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Reference no: EM131128855

  • Write the answers to the following questions in Word or Excel format, including your calculation and the results. Use the Attach File function below.
  • For Question #1, it is required to have approximately 150 words.
  • Correct grammar, spelling and punctuation are expected.
  1. Given that Dov Pharmaceuticals was down by 98% for 2006, why did some investors hold the stock? Why didn't they sell out before the price declined so sharply?
  2. Your stock investments return 8%, 12%, and -4% in consecutive years.
    • What is the geometric return?
    • What is the sample standard deviation of the above returns?
    • Using the standard deviation and mean that you just calculated, and assuming a normal probability distribution, what is the probability of losing 3% or more?

Reference no: EM131128855

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