Calculate the return on stock X from December 31, 2021 to December 31, 2022. Assume all...
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Calculate the return on stock X from December 31, 2021 to December 31, 2022. Assume all dividends are reinvested in the stock. Dividends and ex-dividend prices (prices after dividend payments) are as follows: Date Dec 31, 2021 Mar 31, 2022 Jun 30, 2022 Sep 30, 2022. Dec 31, 2022. Price 42 44 43 46. 47 Dividend 1.2 1.2 1.2 1.2 Problem 5.2. The probability distribution of return on a stock follows. Probability 0.2 0.3 0.4 0.1 Return -20% 0% 20% 40% Calculate the expected return and the standard deviation of return. Problem 5.3. The historical annual returns of a stock are: Year 2015 2016 2017 2018 2019 2020 2021 2022 Return -12% 3% 18% 7% 22% 8% -4% 14% Calculate the average return and the standard deviation of return. Calculate the return on stock X from December 31, 2021 to December 31, 2022. Assume all dividends are reinvested in the stock. Dividends and ex-dividend prices (prices after dividend payments) are as follows: Date Dec 31, 2021 Mar 31, 2022 Jun 30, 2022 Sep 30, 2022. Dec 31, 2022. Price 42 44 43 46. 47 Dividend 1.2 1.2 1.2 1.2 Problem 5.2. The probability distribution of return on a stock follows. Probability 0.2 0.3 0.4 0.1 Return -20% 0% 20% 40% Calculate the expected return and the standard deviation of return. Problem 5.3. The historical annual returns of a stock are: Year 2015 2016 2017 2018 2019 2020 2021 2022 Return -12% 3% 18% 7% 22% 8% -4% 14% Calculate the average return and the standard deviation of return.
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52 Calculating Expected Return and Standard Deviation To calculate the expected return and standard deviation of a stocks returns using the given prob... View the full answer
Related Book For
An Introduction to Management Science Quantitative Approaches to Decision Making
ISBN: 978-1111823610
14th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
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