What was the arithmetic average return on the stock

Assignment Help Financial Management
Reference no: EM13922991

You’ve observed the following returns on Doyscher Corporation’s stock over the past five years: –28.8 percent, 16.2 percent, 35.4 percent, 3.6 percent, and 22.6 percent. Requirement 1: What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Arithmetic average return % Requirement 2: (a) What was the variance of the returns over this period? (Do not round intermediate calculations. Round your answer to 6 decimal places (e.g., 32.161616).) Variance (b) What was the standard deviation of the returns over this period? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Standard deviation %

Reference no: EM13922991

Questions Cloud

What is percys cost of common equity : Percy Motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 11%, and its tax rate is 40%. Percy's CFO estimates that the company's WACC is 14.30%...
Dividend on its stock : Merton Enterprises pays a constant $5 dividend on its stock. The company will maintain this dividend for the next 10 years and then cease paying dividends forever, if your required rate of return is 8 percent, what is the value of this stock?
Capital asset pricing model-required rate of return on stock : Using the capital asset pricing model (CAPM), what is the required rate of return on a stock if the risk-free rate of return is 5%, the return on the market is 11%, and beta is equal to 1.2?
What effect does this dividend have on retained earnings : Lavender, Inc. announces a large stock dividend of 65% of the 3.1 million outstanding shares of common stock. The current price per share is $8.85. Par value of the stock is $0.01 per share. What effect does this dividend have on retained earnings?
What was the arithmetic average return on the stock : You’ve observed the following returns on Doyscher Corporation’s stock over the past five years: –28.8 percent, 16.2 percent, 35.4 percent, 3.6 percent, and 22.6 percent. What was the arithmetic average return on the stock over this five-year period?
About the combined option positions : Draw a profit diagram for each of the following combined option positions.
What is project npv in the worst-case scenario : The most likely outcomes for a particular project are estimated as follows: What is project NPV in the worst-case scenario? What is project NPV in the best-case scenario, that is, assuming all variables take on the best possible value?
Interest tax shield from non-concessionary loan : An Italian company is considering expanding the sales of its cappuccino machines to the U.S market. As a result, the idea of a setting up a manufacturing facility in the U.S should be explored. Why APV model is better than NPV model for capital budge..
Raise capital by issuing bonds to the public : Put together a memo to your Board of Directors, as the Company's CFO, which describes some of the risks associated with your Board's plans to raise capital by issuing bonds to the public. Be sure to include the effects of inflation as well as provide..

Reviews

Write a Review

Financial Management Questions & Answers

  The degree of operating leverage for level of production

The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $84.44. The variable cost per unit is $22.14, Poseidon Swim has average fixed costs per year of $5,685. Determine the degree of operating levera..

  Standard sinking fund method repayment at rate

Show that the borrower’s periodic outlay for a standard sinking fund method repayment at rate j is larger than the level outlay under amortization method with the interest rate i, if i > j

  Comprehensive time value of money

Medical Research Corporation (Comprehensive time value of money) Dr. Harold Wolf of Medical Research Corporation (MRC) was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that re..

  What is the probability that an account has a balance

The checking accounts of Sun Bank are categorized by the age of account and the account balance. Auditors will select accounts at random from the following 1000 accounts. What is the probability that an account is less than 2 years old? What is the p..

  What was the capital gains yield and dividend yield

Suppose a stock had an initial price of $96 per share, paid a dividend of $2.70 per share during the year, and had an ending share price of $77.50. Compute the percentage total return. What was the dividend yield? What was the capital gains yield?

  Determine the expected tail loss

Determine the Value-at-Risk (VaR), denominated in Australian dollars, for the portfolios provided - Determine the Expected Tail Loss (ETL), denominated in Australian dollars, for the portfolios provided below using the results from

  What is the outstanding balance at the end of ten years

Your firm has borrowed $15 million from a bank under the following terms: Payments are to be mode end of every quarter for next 25 years. Interest rate is 8.4% compounded quarterly. Prepare an amortization table using XL. What is the outstanding bala..

  Utilization of resources overall demand changes for process

Explain what happens to utilization of resources as overall demand changes for a process, and the mix of demand changes. WHY is this important for a firm?

  Homeowners debt payments to take home pay ratio

Experts advise that your debt payments to take home pay ratio should not exceed 20%. A homeowner has the following monthly income and expenses: What is the homeowner's "debt payments to take home pay" ratio?

  Review the currency exposure of that countrys firm or mnc

Country risk and  retrospectively monitor spot foreign exchange rates over a continuous period of time, review the currency exposure of that country's firm or MNC*, present the information to the reader in a concise and clear manner.

  What is the yield to maturity on each bond

Shankalot Investment Company plans to purchase either (1) zero-coupon bonds that have ten years to maturity, a par value of $100 million, What is the yield to maturity on each bond? What is the duration of each bond?

  Vanadian currency-the plumbum

A year ago the Vanadian currency, the plumbum (VAP), had a mid-rate of VAP 6.5 to the dollar. Today it is VAP 8.7 per dollar. Has the VAP appreciated or depreciated against the dollar? By what percentage?

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