This table lists the year-end prices and dividends of a stock and the annual returns of...
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This table lists the year-end prices and dividends of a stock and the annual returns of a risk-free asset: Year 0 1 Stock Price $20,89 $22.83 de 21-in frisons $26.78 3 4 out 5 botasw $24.12 $25.27 $31.93 ro Stock Dividend $0.62 $0.72 $0.84 $0.98 $1.25 Risk-free rate 2.00%idon 2.50% A 1.50% 1.30% x 2.70% W (6) 220 a) What is the arithmetic average return for the stock? What is the arithmetic average return for the risk-free asset? (11 marks) cilo xpIG b) What is the risk premium of this stock? (3 marks) c) What are the variance and standard deviation of this stock? (5 marks) Fo This table lists the year-end prices and dividends of a stock and the annual returns of a risk-free asset: Year 0 1 Stock Price $20,89 $22.83 de 21-in frisons $26.78 3 4 out 5 botasw $24.12 $25.27 $31.93 ro Stock Dividend $0.62 $0.72 $0.84 $0.98 $1.25 Risk-free rate 2.00%idon 2.50% A 1.50% 1.30% x 2.70% W (6) 220 a) What is the arithmetic average return for the stock? What is the arithmetic average return for the risk-free asset? (11 marks) cilo xpIG b) What is the risk premium of this stock? (3 marks) c) What are the variance and standard deviation of this stock? (5 marks) Fo
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Statistics and Data Analysis for Financial Engineering
ISBN: 978-1461427490
1st edition
Authors: David Ruppert
Posted Date:
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