Over the past five years, a stock has returned 15%, 13%, -20%, 12%, and 2%. Estimate your expected return using the statistical estimator seen in our video. Give your answer in decimal form to three decimal places (ie, 5% is 0.050).

Question 2

Let's say you buy a bond at a price of 1000EUR. In a year you sell it at a price of 1000EUR. If you have paid a coupon payment of EUR 50 at the end of the year, what is your total realized return? Be sure to answer in decimal form to two decimal places (ie 2% is 0.02).

Question 3

Let's say you buy a bond at 100 USD. In a year, it is trading at USD 120, but the price level in the economy has risen by 5%. What is your actual return (ie, adjusted for inflation)? Be sure to answer in decimal form to three decimal places (ie, 5% is 0.050).

Answer rating: 100% (QA)

Answer 1 Using the statistical estimator seen in the video the expected return would be the average ... View the full answer