Question

The returns of stock A for each of the past 4 years are 0.1, -0.05, 0.12...

The returns of stock A for each of the past 4 years are 0.1, -0.05, 0.12 and -0.03. What is the volatility of returns of stock A?  

Homework Answers

Answer #1

IT IS TAKEN AS A SAMPLE STANDARD DEVIATION

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Stock A and B have the following returns: Stock A Stock B 1 0.10 -0.03 2...
Stock A and B have the following returns: Stock A Stock B 1 0.10 -0.03 2 0.17 0.10 3 0.05 0.05 4 -0.05 0.15 5 -0.08 0.12 a. What are the expected returns of the two stocks? b. What are the standard deviations of the two stocks? c. If their correlation is 0.75, what is the expected return and standard deviation of a portfolio of 35% stock A and 65% Stock B?
You have the following data on (1) the average annual returns of the market for the...
You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A and B. Which of the possible answers best describes the historical betas for A and B? Years Market Stock A Stock B 1 0.03 0.16 0.05 2 -0.05 -0.20 0.05 3 0.01 0.12 0.05 4 -0.10 -0.25 0.05 a. bA < 0; bB = 0 b. bA = 0; bB = -1 c. bA...
Stocks A and B have the following returns: Stock A Stock B 1 0.08 0.04 2...
Stocks A and B have the following returns: Stock A Stock B 1 0.08 0.04 2 0.04 0.03 3 0.13 0.04 4 -0.03 0.03 5 0.07 -0.05 Stocks A and B have the following​ returns: Stock A Stock B 1 0.080.08 0.040.04 2 0.040.04 0.030.03 3 0.130.13 0.040.04 4 negative 0.03−0.03    0.030.03 5 0.070.07 negative 0.05−0.05    a. What are the expected returns of the two​ stocks? b. What are the standard deviations of the returns of the two​ stocks? c....
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 4 percent,...
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 4 percent, –15 percent, 26 percent, 19 percent, and 14 percent.    What was the arithmetic average return on the company's stock over this five-year period?     What was the variance of the company's returns over this period?     What was the standard deviation of the company’s returns over this period?
over the past six years, a stock and annual returns of 14%, -3%, 8%, 21%, -16%,...
over the past six years, a stock and annual returns of 14%, -3%, 8%, 21%, -16%, and 4%. what is the Standard Deviation of these returns? 13.05 11.27 15.08 14.40 13.59
Suppose that the short rate is 4% and its real-world process is:                         dr = 0.1(0.05...
Suppose that the short rate is 4% and its real-world process is:                         dr = 0.1(0.05 - r)dt + 0.01dz While the risk-neutral process is:                         dr = 0.1(0.11 - r)dt + 0.01dz First Question: What is the market price of interest rate risk? Second Question: What is the expected return and volatility for a 5-year zerocoupon bond in the risk-neutral world? Third Question: What is the expected return and volatility for a 5-year zerocoupon bond in the real world?
4. A. A stock had returns of 21.70% (1 year ago), 2.40% (2 years ago), X...
4. A. A stock had returns of 21.70% (1 year ago), 2.40% (2 years ago), X (3 years ago), and ‑14.60% (4 years ago) in each of the past 4 years. Over the past 4 years, the geometric average annual return for the stock was 2.85%. Three years ago, inflation was 3.62% and the risk-free rate was 4.47%. What was the real return for the stock 3 years ago?  Answer as a rate in decimal format so that 12.34% would be...
Stock A and B have the following returns: Stock A Stock B 1 0.11 0.07 2...
Stock A and B have the following returns: Stock A Stock B 1 0.11 0.07 2 0.04 0.02 3 0.15 0.05 4 -0.04 0.03 5 0.08 -0.03 a. What are the expected returns of the two​ stocks? b. What are the standard deviations of the returns of the two​ stocks? c. If their correlation is 0.43, what is the expected return and standard deviation of a portfolio of 77% Stock A and 23% Stock B?
, Stocks A and B have the following​ returns: Stock A Stock B 1 0.09 0.07...
, Stocks A and B have the following​ returns: Stock A Stock B 1 0.09 0.07 2 0.07 0.04 3 0.12 0.04 4 −0.03    0.02 5 0.08 −0.05    a. What are the expected returns of the two​ stocks? b. What are the standard deviations of the returns of the two​ stocks? c. If their correlation is 0.46 ,what is the expected return and standard deviation of a portfolio of 76​% stock A and 24​% stock​ B? a. What are the...
The following table presents annual returns for B&G stock over the past four years: Year 1...
The following table presents annual returns for B&G stock over the past four years: Year 1 2 3 4 Return 7.55% 13.48% 10.15% 1.48% What is the standard deviation of B&G's returns?