Standard deviation-average return and variance

Assignment Help Financial Management
Reference no: EM131060692

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 12 percent, –9 percent, 20 percent, 17 percent, and 10 percent.

A. What was the arithmetic average return on Crash-n-Burn’s stock over this five-year period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)

Average return %?

b-1. What was the variance of Crash-n-Burn’s returns over this period? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.)

Variance?

b-2 What was the standard deviation of Crash-n-Burn’s returns over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation %?

Reference no: EM131060692

Questions Cloud

What ratio b/l will the bending moment at the midpoint : The beam ABCD shown in the figure has overhangs at each end and carries a uniform load of intensity q. For what ratio b/L will the bending moment at the midpoint of the beam be zero?
What was the average real return on crash-n-burn stock : You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 14 percent, –7 percent, 17 percent, 15 percent, and 10 percent. What was the average real return on Crash-n-Burn’s stock? What was the average nominal ri..
Organisation is-related outsourcing : Present the news item you found about an organisation's IS-related outsourcing that has presented one or more ethical, political or security issues. Summarise the use of outsourcing and the issue(s) that arose as a result of the decision to outsou..
What is motivation and potential impact of wally one rule : It is proper for Fred to share his concerns with his wife Maria, especially when Fred's work is regulated by Maria's employer? Fred says that the new plant is outside Maria's jurisdiction because it will be in Mexico. Do our professional responsib..
Standard deviation-average return and variance : You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 12 percent, –9 percent, 20 percent, 17 percent, and 10 percent. What was the arithmetic average return on Crash-n-Burn’s stock over this five-year period..
Determine the bending moment at the midpoint of the bow : At full draw, an archer applies a pull of 130 N to the bowstring of the bow shown in the figure. Determine the bending moment at the midpoint of the bow
Semiannual coupon bond matures : An 7% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current yield of 7.5197%. What is the bond's price? Round your answer to the nearest cent. What is the bond's YTM?
Identify the negative consequences of weight cycling : Identify the negative consequences of weight cycling. What are the four components of a sound approach to weight management?
What was dividend yield and capital gains yield : Suppose a stock had an initial price of $58 per share, paid a dividend of $1.90 per share during the year, and had an ending share price of $68. What was the dividend yield and the capital gains yield?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the addition to retained earnings

Billy’s Exterminators, Inc., has sales of $589,000, costs of $278,000, depreciation expense of $30,000, interest expense of $25,000, a tax rate of 35 percent and paid out $60,000 in cash dividends. What is the addition to retained earnings?

  How much money can you get by selling your rights

Roth Corp. wants to raise $3.8 million via a rights offering. The company currently has 480,000 shares of common stock outstanding that sell for $35 per share. Its underwriter has set a subscription price of $25 per share and will charge the company ..

  What is the discounted payback period for the project

Nugent Communication Corp. is investing $10,930,700 in new technologies. The company’s management expects significant benefits in the first three years after installation (as can be seen by the following cash flows), and smaller constant benefits in ..

  Company required by law to report to potential customers

Belk Department Store charges a daily rate of 0.01 percent on its store credit cards. What interest rate is the company required by law to report to potential customers?

  Compute the taxable equivalent yield and yield to maturity

A 4.40 percent coupon municipal bond has 16 years left to maturity and has a price quote of 105.50. The bond can be called in eight years. The call premium is one year of coupon payments. Compute the bond’s current yield. Compute the taxable equivale..

  Transactions affect value of tier i and total capital ratios

Onshore Bank has $20 million in assets, with risk-adjusted assets of $10 million. CET1 capital is $500,000, additional Tier I capital is $50,000, and Tier II capital is $400,000. How will each of the following transactions affect the value of the CET..

  Save for retirement-return of stock account is expected

You are planning to save for retirement over the next 25 years. To do this, you will invest $850 a month in a stock account and $450 a month in a bond account. The return of the stock account is expected to be 10.5 percent, and the bond account will ..

  Debt without changing the cost of debt or equity

Jefferson International’s debt is less expensive than its equity. If it could issue more debt without changing the cost of debt or equity, which of the following would occur?

  Nonconstant growth valuation

A company currently pays a dividend of $2.75 per share (D0 = $2.75). It is estimated that the company's dividend will grow at a rate of 19% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of..

  Company expects this equipment will lead to cash flows

Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $815,822, $863,275, $937,250, $1,020,110, $1,212,960, and $1,225,000 over the next six years. If the appropriate disco..

  Bonds outstanding with coupon rate

Union Local School District has bonds outstanding with a coupon rate of 3.5 percent paid semiannually and 13 years to maturity. The yield to maturity on these bonds is 2.5 percent and the bonds have a par value of $10,000

  Considering the purchase of new parking system

A small town in Ohio is considering the purchase of a new parking system that would enhance the collection of parking fees while providing additional convenience to shoppers. The hardware requires an immediate outflow (an investment today) of $1350.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd