What was the stocks return for the missing year

Assignment Help Financial Management
Reference no: EM13922971

You find a certain stock that had returns of 12.2 percent, –21.1 percent, 27.1 percent, and 18.1 percent for four of the last five years. Assume the average return of the stock over this period was 10.20 percent. Requirement 1: What was the stock’s return for the missing year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Stock's return % Requirement 2: What is the standard deviation of the stock’s returns? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Standard deviation %

Reference no: EM13922971

Questions Cloud

An investor was expecting a return : An investor was expecting a return of 14.7% on her portfolio with a beta of 1.13 before the market risk premium decreased from 8 to 7%. Based on this change, what return should she now expect on the portfolio?
Portfolio return at the beginning of the month : Portfolio Return At the beginning of the month, you owned $6,100 of Company G, $8,300 of Company S, and $1,600 of Company N. The monthly returns for Company G, Company S, and Company N were 7.55 percent, -1.53 percent, and -.20 percent. What is your ..
Considering project-will result in initial aftertax cach : Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.86 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. What is the maximum initial cost the co..
What is the return shareholders are expecting : Expected Return Circuit City Stores (CC) recently paid a $.33 dividend. The dividend is expected to grow at a 24.70 percent rate. At the current stock price of $9.66, what is the return shareholders are expecting?
What was the stocks return for the missing year : You find a certain stock that had returns of 12.2 percent, –21.1 percent, 27.1 percent, and 18.1 percent for four of the last five years. Assume the average return of the stock over this period was 10.20 percent. What was the stock’s return for the m..
Book of northouse pg 2013 leadership theory and practice : The question is located in the book of Northouse, P. G. (2013) Leadership: Theory and practice. Chapter 2. Please go there and get the three cases (2.1, 2.2, and 2.3), that is the question. At the end of each case (2.1, 2.2, and 2.3), you will find a..
What inflation premium is built into five year bond yields : Crockett Corporation's 5-year bonds yield 6.35%, and 5-year T-bonds yield 4.75%. The real risk-free rate is r* = 3.50%, the default risk premium for Crockett's bonds is DRP = 1.00% versus zero for T-bonds, the liquidity premium on Crockett's bonds is..
What is intrinsic value of firm based on projected dividends : Whole Foods’ current dividend per share is $1.07. You expect dividends to grow at 5% per year into perpetuity. Whole Foods’ beta is 0.85. The current risk free rate is 2.9%, and the expected return on the market portfolio is 7.4%. what is the intrins..
Real cash flows must be discounted at a real discount rate : Real cash flows must be discounted at a real discount rate. (1 + real rate of interest) = (1 + nominal rate of interest)/(1 + inflation rate) The actual real rate of interest almost equals "nominal rate of interest - inflation rate." Inflation rate =..

Reviews

Write a Review

Financial Management Questions & Answers

  Portfolio equally invested in a risk-free asset

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.05 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

  Risk for high medical expenditures

The law now gives a worker who becomes unemployed the right to buy continuing health insurance coverage after leaving the company. Why might it be rational for a factory worker who loses his or her job to give up this legal right to purchase coverage..

  What is the quoted price

A Treasury STRIPS matures in 7 years and has a yield to maturity of 4.4 percent. if the par value is $100,000, what is the price of STRIPS? What is the quoted price?

  What is the after-tax cost of the bond

A firm’s bond currently sells for $1,040, has a 7% coupon interest rate and $1,000 par value, pays interest annually, and has 8 years to maturity. The firm’s corporate tax rate is 35%. What is the after-tax cost of the bond?

  Evaluate economics of biological emission control system

Evaluate the economics of a biological emission control system and compare it to the thermal/incineration system. For the biological based treatment system, the capital cost is $100,000 with routine maintenance costing $15,000 per year for the first ..

  Biggest challenge in terms of cross-cultural management

The number one semiconductor company in the world, Applied Materials, recently merged with the world's number three semiconductor company, Tokyo Electron. The stock prices of both companies went up significantly after the merger was announced, which ..

  University of ballarat general guide

All written work must conform with the University of Ballarat General Guide for the Presentation of Academic Work.

  What is the companys stock price per share today

Troy Tec Inc. is expected to produce $100 million FCF (free cash flow) at the end of year 3, $150 million FCF at the end of year 4, $180 million at the end of year 5 and thereafter the FCF is expected to grow at a constant rate of 4%. No FCFs ($0) ar..

  Determine the value of the stock

The French Thaler and Company’s stock has paid dividends of $1.60 over the past 12 months. Its historical growth rate of dividends has been 8 percent but analysts expect the growth to slow to 5 percent annually for the foreseeable future. Determine t..

  Commercial prawn trawlers claim against megabucks

What action or actions in tort may the commercial prawn trawlers claim against Megabucks Ltd?

  An income statement prepared according to gaap

An income statement prepared according to GAAP:

  Expected to pay the same amount of dividend

ABC Inc. is expected to pay $1.51 dividend at the end of the year and it expected to pay the same amount of dividend forever. What is its stock price, assuming it has a required return of the stock is 9%?

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