Question

You are a financial manager and have observed the following returns on Kam Steel Corporation stock...

You are a financial manager and have observed the following returns on Kam Steel Corporation stock over the past ten years: 7%, −12%, 11%, -38%, 14%, 22%, -26%, 18%, 20%, and 23%. Based on the given information, please answer questions a and b.

What was the arithmetic average return on Kam Steel Corporation stock over this 10-year period?

What was the variance of Kam Steel Corporation stock's returns over this period? The standard deviation

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Variance is the sum of square of deviation from the mean

Standard Deviation is the square root of variance

Mean is the sum of observations divide by number of observations

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
You are a financial manager and have observed the following returns on Kam Steel Corporation stock...
You are a financial manager and have observed the following returns on Kam Steel Corporation stock over the past ten years: 7%, −12%, 11%, -38%, 14%, 22%, -26%, 18%, 20%, and 23%. Based on the given information, please answer questions a and b. a) What was the arithmetic average return on Kam Steel Corporation stock over this 10-year period? b) What was the variance of Kam Steel Corporation stock's returns over this period? The standard deviation?
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?
9. You’ve observed the following returns on Barnett Corporation’s stock over the past five years: -12...
9. You’ve observed the following returns on Barnett Corporation’s stock over the past five years: -12 percent, 23 percent, 18 percent, 7 percent, and 13 percent What was the arithmetic average return on the stock over this five-year period? What was the variance of the returns over this period? The standard deviation? 10. For problem 9, suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 4.3 percent. A What...
You’ve observed the following returns on SkyNet Data Corporation’s stock over the past five years: 19...
You’ve observed the following returns on SkyNet Data Corporation’s stock over the past five years: 19 percent, 24 percent, 11 percent, −9 percent, and 13 percent.      a.What was the arithmetic average return on the company’s stock over this 5-year period?      b.What was the variance of the company’s returns over this period? The standard deviation? Suppose the average inflation rate over this period was 3.6 percent and the average T-bill rate over the period was 4.1 percent.      c.What...
9. Calculating Returns and Variability You’ve observed the following returns on Yasmin Corporation’s stock over the...
9. Calculating Returns and Variability You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 19 percent, −13 percent, 7 percent, 25 percent, and 16 percent. a. What was the arithmetic average return on the company’s stock over this five-year period? b. What was the variance of the company’s stock returns over this period? The standard deviation? 10. Calculating Real Returns and Risk Premiums In Problem 9, suppose the average inflation rate over this period was...
You’ve observed the following returns on Barnett Corporation’s stock over the past five years: –27.3 percent,...
You’ve observed the following returns on Barnett Corporation’s stock over the past five years: –27.3 percent, 15.2 percent, 33.4 percent, 3.1 percent, and 22.1 percent. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return % = What was the variance of the returns over this period? (Do not round intermediate calculations and round your...
You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 19 percent,...
You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 19 percent, –13 percent, 16 percent, 21 percent, and 10 percent. a. What was the arithmetic average return on the company's stock over this five-year period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Average return            {C} {C}{C} % b-1 What was the variance of the company's stock returns over this period? (Do not...
You find a certain stock that had returns of 14 percent, -11 percent, 21 percent, and...
You find a certain stock that had returns of 14 percent, -11 percent, 21 percent, and 22 percent for four of the last five years. The average return of the stock over this period was 12 percent. What was the stock's return for the missing year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places.) What is the standard deviation of the stock's returns? ( DO not round intermediate calculations and enter...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time:...
Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y Market 2009 16% 14% 13% 2010 19 6 9 2011 -15 -2 -13 2012 2 1 1 2013 23 11 18 Assume that the risk-free rate is 3% and the market risk premium is 6%. Do not round intermediate calculations. What is the beta of Stock X? Round your answer to two decimal places. What is the beta of...
Consider the following probability distribution of returns for Alpha Corporation: Current Stock Price ($) Stock Price...
Consider the following probability distribution of returns for Alpha Corporation: Current Stock Price ($) Stock Price in One Year ($) Return R Probability PR $38 55% 25% $25 $29 0% 50% $22 -25% 25% What is the expected return for Alpha Corporation? What is the variance of the return on Alpha Corporation? What is the standard deviation of the return on Alpha Corporation? pls no excel sheets
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • Statistics Discussion: The accuracy of a forecasting technique is evaluated especially using the MSE (mean squared...
    asked 16 minutes ago
  • If the U.S. government manages to close a recessionary gap and achieve potential GDP with fiscal...
    asked 20 minutes ago
  • A block with mass 10kg is on a ramp angled at 20 degrees above the horizontal,...
    asked 20 minutes ago
  • I have a sample of 31 7thgrade girls who took an IQ test.  I calculated the sample...
    asked 28 minutes ago
  • A researcher wishes to estimate the proportion of adults who have​ high-speed Internet access. What size...
    asked 28 minutes ago
  • Brick column in the external corridor of a house, with section size of 440 mm X520...
    asked 29 minutes ago
  • 17.                             Mel has a(n) __________ lien on Ellen’s car after he replaced her clutch. The lien.
    asked 36 minutes ago
  • Jackson Company engaged in the following investment transactions during the current year. Feb 17,Purchased  430 shares of...
    asked 47 minutes ago
  • When might discrimination in the workplace be justified? Might discrimination on the basis of gender or...
    asked 58 minutes ago
  • The strength grade of materials used for brick masonry at a certain site is as follows:...
    asked 1 hour ago
  • Show (prove), from the original definition of the integers, that subtraction of integers is well defined....
    asked 1 hour ago
  • How is polarity of a "bond" different than polarity of a "molecule?" What makes a particular...
    asked 1 hour ago