Question: Finance Homework please help :) (for question 4 also; What is the investment's standard deviation?) (Related to Checkpoint 7.1) (Expected rate of return and risk)
Finance Homework please help :)
(for question 4 also; What is the investment's standard deviation?)



(Related to Checkpoint 7.1) (Expected rate of return and risk) B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 5.1 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security? (Click on the icon in order to copy its contents into a spreadsheet.) a. The investment's expected return is \%. (Round to two decimal places.) (Click on the icon in order to copy its contents into a spreadsheet.) a. Calculate the annual rate of return for each year from the above information. b. What is the arithmetic average rate of return earned by investing in Brangus Cattle Company's stock over this period? c. What is the geometric average rate of return earned by investing in Brangus Cattle Company's stock over this period? d. Which type of average rate of return best describes the average annual rate of return earned over the period (the arithmetic or geometric)? Why? a. The annual rate of return at the end of year 2 is %. (Round to two decimal places.) (Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? (Click on the icon In order to copy its contents into a spreadsneet.) a. Given the information in the table, the expected rate of return for stock A is 16%. (Round to two decimal places.) The standard deviation of stock A is \%. (Round to two decimal places.)
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