Question: Need calculations on how to solve for question 10 based on question 9. Thank you 9. Calculating Returns and Variability [LO1] Youve observed the following

Need calculations on how to solve for question 10 based on question 9. Thank you

9. Calculating Returns and Variability [LO1] Youve observed the following returns on Crash-n-Burn Computer's stock over the past five years: 7percent, -13 percent, 21 percent, 34 percent and 15 percent.

a. What was the arithmetic average return on Crash-n-Burn's stock over this five year period?

b. What was the variance of Crash-n-Burn's returns over this period? The standard deviation?

10. Calculating Real Returns and Risk Premiums [LO1] For problem 9, suppose the average inflation rate over this period was 3.5 percent and the average T-bill rate over the period was 4.2 percent.

a. What was the average real return on Crash-n-Burn's stock?

b. What was the average nominal risk premium on Crash-n-Burn's stock?

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!

Problem 12-11 Calculating Real Rates [LO1] Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 10 percent, 11 percent, 18 percent, 19 percent, and 10...

Problem 12-11 Calculating Real Rates (LO1] You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 12 percent. -9 percent, 20 percent, 17 percent, and 10...

9. Calculating Returns and Variability Youve observed the following returns on Yamauchi Corporations stock over the past five years: 10 percent, 24 percent, 21 percent, 11 percent, and 8 percent. a....

Problem 12-10 Calculating Real Returns and Risk Premiums [LO1] Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 17 percent, 15 percent, 19 percent, 29...

Problem 12-10 Calculating Real Returns and Risk Premiums [LO1] You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 12 percent, -9 percent, 20 percent, 17...

Problem 12-10 Calculating Real Returns and Risk Premiums [LO1] You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 12 percent. -9 percent, 20 percent, 17...

Problem 12-10 Calculating Real Returns and Risk Premiums [LO1] Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 10 percent, 10 percent, 17 percent, 22...

please help! answer both questions please Problem 12-10 Calculating Real Returns and Risk Premiums [LO1] You've observed the following returns on Crash-n-Burn Computer's stock over the past five...

Problem 12-10 Calculating Real Returns and Risk Premiums (LO1] You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 18 percent. -3 percent, 16 percent, 11...

Condensed data from the comparative statement of financial position of Kokomo Inc. follow: Current assets Non-current assets Current liabilities Non-current liabilities Common shares 2018 2017 2016...

(Medicare). The annual expenditures for Medicare (in billions of dollars) by the US Government for selected years since 1980 are shown in Table 4. Let x represent the years since 1980. (Use 4 decimal...

Leveraged ETFs are constructed to mimic their underlying index over the long run. So if the QQQ goes up 1 0 % in a year, the TQQQ will go up 3 0 % ( or close to it ) in a year.

A random sample of 43 biology students in a science program are selected for a study. Of those selected, only 27 passed the mid term exam. At the 5% significance level, is there sufficient evidence...

Identify some ethical issues and their relevance to employee relations

Explain the concepts, values and legal framework that underline the disciplinary process in employment

Describe the major issues relating to sexual harassment in the workplace and the implications for managing employee relations