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yulyashka [42]
3 years ago
7

You find a certain stock that had returns of 13 percent, −20 percent, 21 percent, and 12 percent for four of the last five years

. The average return of the stock over this period was 9.3 percent.
Required:
a. What was the stock’s return for the missing year?
b. What is the standard deviation of the stock’s returns?
Business
2 answers:
Aloiza [94]3 years ago
4 0

Answer:

  • Mean = 20.5%
  • Standard Deviation = 16.90%

Explanation:

Missing mean

9.3 = (13 +-20 + 21 + 12 + missing mean)/5

46.5 = 13 +-20 + 21 + 12 + missing mean

Missing mean = 46.5 - 13 + 20 - 21 -12

Missing mean = 20.5%

Standard deviation

Variance

Squared Deviations from mean = (( 0.13 - 0.093)² + (-0.20 - 0.093)² + (0.21 - 0.093)² + (0.12 - 0.093)² + ( 0.25 - 0.093)²) / ( 5- 1)

= 0.1142 / 4

= 0.02855‬

Standard deviation = √0.02855‬

= 16.90%

LenKa [72]3 years ago
3 0

Answer: year 5 = 20.5

standard deviation =15.11

Explanation:

YEAR       RETURNS

Year 1        13%

year 2       -20%

year 3        21 %

year 4        12%

year 5      ??

Average return = total returns 0f year 1 to 5/ number of year

year1 + year2 + year3 + year 4 + year 5)/5

9.3% = 13% +-20% + 21%+ 12% +y

9.3% x 5 =26% + y

46.5 -26 =y

y= 20.5= year 5

Standard deviation of the stock's retrurn = ( (x -average mean)2/5))^1/2

Yr               x                x-average mean           x-average mean^2

Yr               x                   x-9.3                              (x-9.3)^2

1            13.00                  3.7                                 13.69

2       - 20.00                 29.3                             858.49

3         21.00                  11.7                               136.89

4         12.00                   2.7                             7.29

5         20.50                   11.2                           125.44

Total                                                                1,141.8

  Standard deviation  =   ( (x -average mean)2/5))^1/2 

=(1141.80/5 )^1/2                  

=228.36^1/2

=15.11

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Answer:

20Y3

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Jan. 20:

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Explanation:

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8 0
3 years ago
You own one call option with an exercise price of $30 on Nadia stock. This stock is currently selling for $27.80 a share but is
Shalnov [3]

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Explanation:

From the information given, the current per share value of the option if it expires in one year will be calculated as follows:

Firstly, we calculate the present value which will be:

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The number of options needed will be:

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Therefore,

27.80 = (1.5 x Co) + [28 / (1+0.05)]

27.80 = 1.5Co + (28/1.05)

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Three major transportation segments and a major company within each segment are as follows:
Irina18 [472]

Answer:

Segment Company Motor

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YRC Worldwide ___4.76_____

Union Pacific ___0.46____

C.H. Robinson Worldwide __12.34____

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Explanation:

a) Data and Calculations:

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                                 Inc. (YRCW)    Pacific Corporation    Arrangement C.H.

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Sales                              $4,832                $21,813                      $13,470

Average long-term

operating assets             1,016                47,569                           1,092

Asset turnover = Sales/Average operating assets

=                                        4.76                  0.46                            12.34

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