Question

Assume the returns of a stock for the previous five years are as follows: 10%, 6%, 5%, 9% and 10%? What is the historical standard deviation of this stock? If the returns are normally distributed, what is the range of returns expected using a 99% level of confidence? If the stock price is currently $30, what is the expected maximum and minimum price of the stock at the end of the year assuming 95% level of confidence. Assume no dividend payment will be paid during the period.

Answer #1

Assume the returns of a stock for the previous five years are as
follows: 10%, 6%, 5%, 9% and 10%? What is the historical standard
deviation of this stock? If the returns are normally distributed,
what is the range of returns expected using a 99% level of
confidence? If the stock price is currently $30, what is the
expected maximum and minimum price of the stock at the end of the
year assuming 95% level of confidence. Assume no dividend...

At the time of purchase, Remington Steel Corporation cost $25
per share. The current stock price is $29.73 per share. Over the
five year holding period, Remington Steel produced the following
annual returns: +8%, 0%, -2%, +7%, +5%. If the returns for
Remington Steel are fairly normally distributed, and the average
return is considered a reasonable predictor of future returns,
within what range will the actual return fall next year at 95%
confidence?

A comapny zk's five year historical returns on its stocks are as
follows 12% 10% 5% 4% and 10 % what is the standard deviation of
the return of the stocks based on these past data
12.93%
6.47%
8.55%
7.29% response immediately

A comapny zk's five year historical returns on its stocks are as
follows 12% 10% 5% 4% and 10 % what is the standard deviation of
the return of the stocks based on these past data
12.93%
6.47%
8.55%
7.29% response immediately please help

The annual returns on Googol's stock share for the last four
years were Normally distributed and equalled: 16 %, 8 %, -17 %, and
21 %, respectively. Using this information you can say that 95 % of
the time the return over one year period lies in the following
range:
Multiple Choice
between -50.54 % and 57.61 %
between -47.68 % and 54.68 %
between -26.74 % and 40.74 %
between -9.87 % and 23.87 %

A firm has the following annual returns for the last five
years:
20%
17%
19%
-40%
18%
Please calculate the SD and the Mean of the firm for the period
in question; in addition, what is the range of values that would
fall within:
68% of the time
99% of the time
95% of the time
Answer: M: 6.8; SD: 26.18
-19.38 to 32.98
-71.74 to 85.34
45.56 to 59.16
Need explanation for this answer

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 observe an investment that has the following historical
returns:
Year
Return
1
-4.66%
2
0.90%
3
10.81%
4
14.17%
5
15.33%
6
9.14%
7
-28.62%
8
12.76%
9
42.87%
10
-5.67%
What was the average (arithmetic mean) return over the 10 year
period?
What was the investment's variance over the 10 year period?
What was the investment's standard deviation over the 10 year
period?
Assuming the 10 years of return are normally distributed and
representative of future returns (big,...

(1) Assume the expected inflation rates for the next five years
are as follows:
Year
Inflation Rate
1
8.0%
2
6.0
3
4.0
4
3.0
5
5.0
In Year 6 and thereafter, inflation
is expected to be 3 percent. The maturity risk premium (MRP) is 0.1
percent per year to maturity for bonds with maturities greater than
six months, with a maximum MRP equal to 2 percent. The real
risk-free rate of return is currently...

The monthly closing stock prices (rounded to the nearest dollar)
for Panera Bread Co. for the first six months of 2010 are reported
in the following table. [You may find it useful to reference the t
table.]
Months Closing Stock Price
January 90, February 95, March 96, April 99, May 91, June 93
a. Calculate the sample mean and the sample
standard deviation.
b. Calculate the 95% confidence interval for
the mean stock price of Panera Bread Co., assuming that...

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