Step by step with provided answers. What is the formula step by step? Thank you so much.

10. Given annual returns of 14%, 8%, -10% and 4%, what is the geometric average?

= 3.61%

11. What is the arithmetic average of the returns in question 10?

= 4.00%

12. What is the standard deviation of the returns in question 10?

= 10.20%

16. Moi International wants to issue 20-year, zero coupon bonds that yield 5 percent. What price should they charge for these bonds if they have a par value of $1,000? Assume annual compounding.

= $376.89

17. A stock has an expected return of 15%. The risk-free rate is 3%, and the market risk premium is 8%. What is the beta for this stock?

= 1.50

18. The beta of the overall market is _____ and the beta of a risk-free security of is _____.

= 1; 0.

19. The stock of RWC has a beta of 1.28. The expected return on the market is 8 percent and the risk-free rate is 1.5 percent. What is the expected return on this stock?

=9.82 percent

20. Wentworth Inc. has bonds on the market with 22 years to maturity, face value of $1,000, YTM of 4.2%, and an annual coupon rate of 6%. The bonds make semiannual coupon payments. What is the current price of the bond?

=Bond price $1,256.82

21. Wentworth Inc. also has common stock that trades actively. The stockholders just received a dividend of $1.00 a share. The dividend is expected to increase by 40% for the next 2 years and then the firm expects to maintain a constant dividend growth rate of 5 percent per year. The required return is 9 percent.

a. What are the expected dividends in years 1 and 2?

=D1 = $1.40, D2 = 1.9

b. What would you be willing to pay for this stock today?

=P0 = $46.24