Question: 1. A. What are the arithmetic and geometric average returns for a stock with annual returns of 4%, 9%, -6%, and 18%? B. A stock

A. What are the arithmetic and geometric average returns for a stock with annual returns of 4%, 9%, -6%, and 18%?

B. A stock had returns of 8%, -2%, 4%, and 16% over the past four years. What is the standard deviation of this stock for the past four years?

C. A portfolio is made up of 75% of stock 1, and 25% of stock 2. Stock 1 has a variance of .08, and stock 2 has a variance of .035. The covariance between the stocks is -.001. Calculate both the variance and the standard deviation of the portfolio.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

1. A. What are the arithmetic and geometric average returns for a stock with annual returns of 4%, 9%, -6%, and 18%? B. A stock had returns of 8%, -2%, 4%, and 16% over the past four years. What is...

A year ago, you purchased 300 shares of DC Technologies, Inc. stock at a price of $9.03 per share. The stock pays an annual dividend of $.10 per share. Today, you sold all of your shares for $28.14...

A year ago, you purchased 300 shares of IXC Technologies, Inc. stock at a price of $9.03 per share. The stock pays an annual dividend of $.10 per share. Today, you sold all of your shares for $28.14...

1, You recently purchased a stock that is expected to earn 11 percent in a booming economy, 9 percent in a normal economy and lose 6 percent in a recessionary economy. There is a 15 percent...

1. What are the arithmetic and geometric average returns for a stock with annual returns of 20 percent, 9 percent, 3 percent, and 13 percent? List the arithmetic answer first. 9.42 percent; 9.75...

FINC 3155 Business Finance Homework 8 Six months ago, you purchased 1,200 shares of ABC stock for $21.30 a share. You have received dividend payments equal to $.60 a share. Today, you sold all of...

Could you help me out to solve these questions and solutions, thank you! What are the arithmetic and geometric average returns for a stock with annual returns of 4%, 9%, -6%, and 18%? 05.89%; 6.25% O...

17 18 19 20 Eight months ago, you purchased 400 shares of Winston, Inc. stock at a price of $54.90 a share. The company pays quarterly dividends of $.50 a share. You have received dividends twice....

You are holding a stock that and has a beta of 2 and is currently in equilibrium. The required return on the stock is 15%, and the market return is 10 percent. What would be the return on the stock,...

What are the arithmetic and geometric average returns for a stock with annual returns of 4%, 9%, -6%, and 18%? See possible answers below: 6.25%; 5.89% 6.25%; 8.33% 8.3%; 5.89%

Write a response for the message below: My capacity for time management has changed. I no longer put things off as much. In order to aid with those time management abilities, I created a daily,...

Discuss foreign equity ownership restrictions. Why do you think countries impose these restrictions?

Which of the following conditional statements would be true only for any number entered for x from 1 - 1 0 0 ( inclusive ) ? x 1 && x 1 0 0 x 1 x 1 0 0 x 1 | | x 1 0 0

------------------------------------- At the beginning of its first year of operations, Bonita Limited has 4,900, $3 preferred shares and 48,000 common shares. Using the format shown below, allocate...

1. Who do you think the stakeholders are in human capital policy development and why?

9.8 Describe leadership development and its impact

9.6 Explain what management development is and why it is important.