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Tom [10]
3 years ago
5

The last four years of returns for a stock are as​ follows: Year 1 2 3 4 Return −4.5​% 28.1​% 12.2​% 3.7​% a. What is the averag

e annual​ return? b. What is the variance of the​ stock's returns? c. What is the standard deviation of the​ stock's returns?
Business
1 answer:
jeyben [28]3 years ago
4 0

Answer:

a. What is the average annual​ return?

average annual return (mean) = (-4.5% + 28.1% + 12.2% + 3.7%) / 4 = 9.875%

b. What is the variance of the​ stock's returns?

variance = [(-4.5% - 9.875%)² + (28.1% - 9.875%)² + (12.2% - 9.875%)²) + (3.7% - 9.875%)²] / 4 = (206.64 + 332.15 + 5.41 + 38.13) / 4 = 582.33 / 4 = 145.5825

c. What is the standard deviation of the​ stock's returns?

standard deviation = √145.5825 = 12.06%

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Then, for the entire of the dividend after year 6th we use the gordon model:

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Y# Cashflow Discounted

0 0          

1 0        

2 0          

3 0.5                 0.304315436

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5 1.36125          0.595014921

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Total 4.296411682

8 0
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If your paycheck indicates that you worked 7.5 hours each day in an 8-day pay period, how many hours did you work in all? A. 54
allsm [11]
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Answer:

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Answer:

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