You find a certain stock that had returns of 18 percent, 23 percent, 16 percent, and 9
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You find a certain stock that had returns of 18 percent, −23 percent, 16 percent, and 9 percent for four of the last five years. If the average return of the stock over this period was 10.5 percent, what was the stock’s return for the missing year? What is the standard deviation of the stock’s returns?
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To find the stocks return for the missing year we need to use the average return formula Average ret...View the full answer
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Related Book For
Corporate Finance
ISBN: 9781265533199
13th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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