What is the standard deviation of these returns

Assignment Help Financial Management
Reference no: EM13765649

A stock had annual returns of 11 percent, 18 percent, 21 percent, 20 percent, and 34 percent over the past five years.

a) What is the average of these returns?

b) What is the standard deviation of these returns?

Reference no: EM13765649

Questions Cloud

Consists of the price of the new equipment plus : Newcastle Coal Company is considering a project that requires an investment in new equipment of $3,800,000, with an additional $190,000 in shipping and installation costs. Newcastle estimates that its accounts receivable and inventories need to incre..
Target capital structure that consists of debt and equity : A company has a target capital structure that consists of 40 percent debt and 60 percent equity. The company's capital budget for next year is $10 million. The company expects a net income of $8 million.   The company's cost of capital is 12 percent...
Developing materials for traditional photographic methods : Kodak used to primarily produce and distribute photographic paper and developing materials for traditional (i.e., non digital) photographic methods. A sizable portion of their business was home photography. Since they were one of the few suppliers of..
What is the book value of the equipment : The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $300,000. What is the book value of the equipment?
What is the standard deviation of these returns : A stock had annual returns of 11 percent, 18 percent, 21 percent, 20 percent, and 34 percent over the past five years. What is the average of these returns? What is the standard deviation of these returns?
Market research spent to evaluate customer demand : Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth retail store across town from its most successful retail outlet. T..
Considering investing in one of two economies : You are a risk-averse investor who is considering investing in one of two economies. The expected return and volatility of all stocks in both economies is the same. In the first economy, all stocks move together in good times all prices rise together..
Suppose the risk-free interest rate : Suppose the risk-free interest rate is 4% and the market portfolio has an expected return of 10% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.32. What is its expected return?
Strayer oracle server : The Strayer Oracle Server may be used to test and compile the SQL Queries developed for this assignment. Your instructor will provide you with login credentials to a Strayer University maintained Oracle server.

Reviews

Write a Review

Financial Management Questions & Answers

  Explain the functions of financial markets

Explain the functions of financial markets and discuss why a dollar tomorrow cannot be worth less than a dollar the day after tomorrow.

  What is the current price of bond

Black Water Corp. just issued zero-coupon bonds with a par value of $1,000. THe bond has a maturity of 25 years and a yield to maturity of 8.29 percent, compounded semi-annually. What is the current price of bond?

  What is the magnitude of your arbitrage profit

You are given the following information: at t = 0, the price of a 10?year zero coupon bond with FV = $10,000 is $7,000; the price of a 3?year zero coupon bond with FV = $5,000 is $4,300; f3,12 = 6%. A bank is offering the following product: What is t..

  Explain higher rate of return than the rate of interest

A company has favorable financial leverage when it uses borrowed funds to earn a higher rate of return than the rate of interest paid for the borrowed money.

  Deposit at beginning of year and interest earned during year

Year Account balance, beginning of year" "Deposit at beginning of year" "Interest earned during year" "Total in account, end year"

  Federal reserve tightens credit and firm uses more debt

How would each of the following scenarios affect a firm's cost of debt Rd(1-T), its cost of equity, Rs, and its WACC? Indicate with a plus(+), a minus (-) or a zero (0) if the factor would raise, would lower or would have an undeterminable effect on ..

  Yield curve is upward-sloping and there is no arbitrage

Suppose the yield curve is upward-sloping and there is no arbitrage. Two ordinary fixed coupon bonds, bond A and bond B, have the same maturity, but bond A has a lower yield. Which bond has the higher coupon?

  Compound annuity problem

(Compound annuity) What is the accumulated sum of each of the following streams of payments?

  What is the addition to retained earnings

Billy’s Exterminators, Inc., has sales of $592,000, costs of $284,000, depreciation expense of $36,000, interest expense of $28,000, a tax rate of 35 percent and paid out $63,000 in cash dividends. What is the addition to retained earnings?

  Find internal rate of return

Find Internal Rate of Return. Initial outlay is $469,000. The project will produce the following after tax cash inflow

  Estimated that the price of the house

You plan to buy the house of your dreams in 7 years. You have estimated that the price of the house will be $119,879 at that time. You are able to make equal deposits every month at the end of the month into a savings account at a rate of 11.55 perce..

  Finance project required by thursday 4th december

project required by thursday 4th december 2014..kindly quote

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