Question: Common Stock A Probability Return 0.20 10% 0.60 16% 0.20 21% Common Stock B Probability Return 0.10 -6% 0.40 5% 0.40 13% 0.10 23% a.


Common Stock A Probability Return 0.20 10% 0.60 16% 0.20 21% Common Stock B Probability Return 0.10 -6% 0.40 5% 0.40 13% 0.10 23% a. Given the information in the table, the expected rate of return for stock AIS 15.8%. (Round to two decimal places) The standard deviation of stock Als [% (Round to two decimal places.) (Related to Checkpoint 7.1) (Calculating rates of return) On December 3, 2007, the common stock of Google Inc. (GOOG) was trading for $681.53. One year later the shares sold for only $279.43. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December 3, 2007? The rate of return you would have earned is % (Round to two decimal places) Related to Checkpoint 7.2) (Calculating the geometric and arithmetic average rate of return) Marsh Inc. had the following end-of-year stock prices over the last five years and paid no cash dividends: Time 1 2 3 4 5 Marsh $8 13 16 9 8 . The annual rate of return at the end of year 2 is %. (Round to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
