1. Business
  2. Finance
  3. 1 if the return on stock a in year 1...

Question: 1 if the return on stock a in year 1...

Question details

1. If the return on stock A in year 1 was 18 %, in year 2 was 5 %, in year 3 was 12 % and in year 4 was -6 %, what was the standard deviation of returns for stock A over this four year period? (Round your answer to 1 decimal place and record without a percent sign. If your final answer is negative, place a minus sign before the number with no space between the sign and the number).

2. If the return on stock A in year 1 was 15 %, in year 2 was -4 %, in year 3 was -10 % and in year 4 was -8 %, what was the average annual return for stock A over this four year period?

3. If the risk free rate is 5 %, the expected return on the market portfolio is 12% and the beta of Stock B is 0.7 , what is the required rate of return for Stock B according to the Capital Asset Pricing Model (CAPM)? (Round your answer rounded to one decimal place and record without a percent sign)

PLEASE write out the work and answer clearly with the answer number and answer clearly labeled!

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution