Question: Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across

Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Great Lakes Manufacturing (GLM): Ten years of realized returns for GLM are given in the following table. Remember: While GLM was started 40 years ago, its common stock has been publicly traded for the past 25 years. The returns on its equity are calculated as arithmetic returns. The historical returns for GLM from 2013 to 2022 are: Year Return 2013 22.00% 2014 12.00% 2015 25.00% 2016 17.00% 2017 30.00% 2018 42.00% 2019 18.00% 2020 13.00% 2021 31.50% 2022 -22.50% Given the preceding data, the average realized return on GLMs stock is Question Blank 1 of 4 type your answer... The preceding data series represents Question Blank 2 of 4 choose your answer... of GLMs historical returns. Based on this conclusion, the standard deviation of GLMs historical returns is Question Blank 3 of 4 type your answer... . If investors expect the average realized return from 2013 to 2022 on GLMs stock to continue into the future, and the risk-free rate is 5%, GLM's Sharpe Ratio is Question Blank 4 of 4 type your answer... .

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