Calculate the:
a. Expected return.
b. The standard deviation of the return.

The table here,

Probability 40% 20% 20% 10% 10%
Return -80% -85% -60% -20% 1,000%

shows the one-year return distribution of Startup Inc.

Using the data,

Historical Stock and Dividend Data for Boeing    
Date        Price Dividend     Date          Price   Dividend
1/2/2008  86.62          1/3/2011   66.40  
2/6/2008  79.91  0.40        2/9/2011   72.63    0.42
5/7/2008  84.55  0.40        5/11/2011 79.08    0.42
8/6/2008  65.40  0.40        8/10/2011 57.41    0 .42
11/5/2008 49.55 0.40       11/8/2011  66.65     0.42
1/2/2009   45.25                1/3/2012   74.22

calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock immediately.

-You bought a stock one year ago for $50.56 per share and sold it today for $57.67 per share. It paid a $1.14 per share dividend today.
a. What was your realized return?
b. How much of the return came from dividend yield and how much came from capital gain?

Answer rating: 100% (QA)

For Startup Inc we can calculate the expected return as follows Expected return 0480 0285 0260 0120 ... View the full answer