Assume that a sample of the monthly percentage rates of return of the stock S is...
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Assume that a sample of the monthly percentage rates of return of the stock S is given in the table below. Month Rates of return Month Rates of return 1 1% 13 4,2% 2 0,5% 14 4,5% 3 4,2% -2,7% -2% 3,5% -3,1% 4,1% 1,7% 4 15GTSSPEE 6 7 8 9 10 11 12 15 16 17 18 19 20 21 22 23 3,2% 24 0,1% -2,4% -2,5% 2,1% -1,7% 3,7% 3,2% -2.4% 2,7% 2,9% -1,9% 1,1% 2.1 Estimate the arithmetic mean rate of return, expressed in percent per year. 2.2 Estimate the arithmetic standard deviation of these returns, again as percent per year. 3 DSC3705/2023 2.3 Estimate the accuracy of the estimates found in part 2.1 and 2.2. 2.4 How do you think the answers to 2.3 would change if you had 2 years of weekly data instead of monthly data? Assume that a sample of the monthly percentage rates of return of the stock S is given in the table below. Month Rates of return Month Rates of return 1 1% 13 4,2% 2 0,5% 14 4,5% 3 4,2% -2,7% -2% 3,5% -3,1% 4,1% 1,7% 4 15GTSSPEE 6 7 8 9 10 11 12 15 16 17 18 19 20 21 22 23 3,2% 24 0,1% -2,4% -2,5% 2,1% -1,7% 3,7% 3,2% -2.4% 2,7% 2,9% -1,9% 1,1% 2.1 Estimate the arithmetic mean rate of return, expressed in percent per year. 2.2 Estimate the arithmetic standard deviation of these returns, again as percent per year. 3 DSC3705/2023 2.3 Estimate the accuracy of the estimates found in part 2.1 and 2.2. 2.4 How do you think the answers to 2.3 would change if you had 2 years of weekly data instead of monthly data?
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21 To estimate the arithmetic mean rate of return expressed as percent per year we need to calculate the average of the monthly rates of return and th... View the full answer
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Auditing and Assurance services an integrated approach
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14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
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