Question: Practice Problems can you just solve 19 and 20 then? 18. The historical data shows that the following class of securities had the highest risk

Practice Problems

can you just solve 19 and 20 then?

18. The historical data shows that the following class of securities had the highest risk (measured by the standard deviation of retums): a. Large company stocks e. Small company stocks b.U.S. Treasury bills c. Long term corporate bonds d. Long term government bonds 19. Given the following data: YEAR STOCK A RETURNS 201a 201b 2010 2010 30% 20% -10% 24% Calculate the average of returns of Stock A a. 10% b. 15% c. 16% d. 25% e. none of the given ones 20. [Using data from the previous question (Question-19)] Calculate the standard deviation of retums of Stock A: (approximately) a. 17.8% b. 15.4% c. 6.25% d. 5% e. none of the given ones

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