Question

Over the last 4 years a stock produced returns of 14,9,-7, and 12 percent, respectively. What...

Over the last 4 years a stock produced returns of 14,9,-7, and 12 percent, respectively. What is the standard deviation of these returns?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Returns for four years are 14%,9%,-7%, and 12% or

Time period =4 years
Mean=(14%+9%+(-7%)+12%)/4=0.07

Now, we need to subtract the mean for each number and then square the result.

=(14%-0.07)^2=0.0049
=(9%-0.07)^2=0.0004
=(-7%-0.07)^2=0.0196
=(12%-0.07)^2=0.0025

Now, we need to calculate the mean of the squared differences.

=(0.0049+0.0004+0.0196+0.0025)/4=0.0274/4=0.00685

To calculate the standard deviation, we need to take the square root of 0.00685
So, standard deviation =(0.00685)^(1/2)=0.082764727 or 8.28% (Rounded to two decimal places)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Over the past six years, a stock had annual returns of 10 percent, 5 percent, 7...
Over the past six years, a stock had annual returns of 10 percent, 5 percent, 7 percent, 8 percent, 2 percent, and -11 percent, respectively. What is the standard deviation of these returns?
A stock produced returns of 14 percent, 17 percent, and −10 percent over three of the...
A stock produced returns of 14 percent, 17 percent, and −10 percent over three of the past four years, respectively. The arithmetic average for the past four years is 6 percent. Show you work here (be as detailed and organized as possible): What is the missing return (i.e., the return in the fourth year)? What is the geometric average return over the four years? What is the standard deviation of returns of the stock? Show your work clearly below.
Over the past six years, a stock produced returns of 12 percent, 16 percent, -3 percent,...
Over the past six years, a stock produced returns of 12 percent, 16 percent, -3 percent, 7 percent, -5 percent, and 9 percent. Based on these six years, what range of returns would you expect to see 95 percent of the time? -23.18 percent to 31.48 percent -18.58 percent to 26.58 percent -14.28 percent to 25.28 percent -10.69 percent to 22.69 percent -2.34 percent to 14.34 percent
Question 15 Over the past 5 years, a stock produced returns of 23 percent, -39 percent,...
Question 15 Over the past 5 years, a stock produced returns of 23 percent, -39 percent, 4 percent, and 16 percent, and -12 percent. Based on these 5 years, which of the following is true? Group of answer choices Average return is higher than standard deviation. Average return is equal to standard deviation. Average return is lower than standard deviation. Both average return and standard deviation are positive. Both average return and standard deviation are negative.
Over the past four years, a stock produced returns of 6 percent, 8 percent, 19 percent,...
Over the past four years, a stock produced returns of 6 percent, 8 percent, 19 percent, and 2 percent, respectively. Based on these four years, what range of returns would you expect to see 95 percent of the time?
A stock had returns of 19 percent, 14 percent, 12 percent, -4 percent, 17 percent, and...
A stock had returns of 19 percent, 14 percent, 12 percent, -4 percent, 17 percent, and 7 percent over the last six years. What is the arithmetic return for the stock? What is the geometric return for the stock?
A stock has had returns of 9 percent, 10 percent, 22 percent, -12 percent, and 25...
A stock has had returns of 9 percent, 10 percent, 22 percent, -12 percent, and 25 percent over the last five years. 1, What is the geometric return for the stock? 2. What is the standard deviation of this stock?
A stock has had returns of 8 percent, 10 percent, 20 percent, -12 percent, and 24...
A stock has had returns of 8 percent, 10 percent, 20 percent, -12 percent, and 24 percent over the last five years. Answer questions 32 - 33 What is the geometric return for the stock? What is the standard deviation of this stock?
Over the past five years, a stock produced returns of 11 percent, 14 percent, 4 percent,...
Over the past five years, a stock produced returns of 11 percent, 14 percent, 4 percent, -9 percent, and 5 percent. What is the probability that an investor in this stock will not lose more than 10 percent in any one given year? - Greater than .5 but less than 1.0 percent. - Greater than 1 percent but less than 2.5 percent. - Greater than 2.5 percent but less than 16 percent. - Greater than 84 percent but less than...
stock has produced returns of 7.6 percent, 8.2 percent, 7.9 percent, 48.6 percent, and -33.4 percent...
stock has produced returns of 7.6 percent, 8.2 percent, 7.9 percent, 48.6 percent, and -33.4 percent over the past five years, respectively. What is the variance of these returns?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT