The rate of return on ABC, Inc., stock over the last five years was -1.19 percent, -2.89 percent, 8.82 percent, 6.3 percent, and 8.47 percent. What was the standard deviation of returns (in percent) on ABC stock over this period? Do intermediate work to six decimals. Answer to two decimals.

The rate of return on ABC, Inc., stock over the last five years was -1.19 percent, -2.89 percent, 8.82 percent, 6.3 percent, and 8.47 percent. What was the standard deviation of returns (in percent) on ABC stock over this period? Do intermediate work to six decimals. Answer to two decimals.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You find a certain stock that had returns of 13 percent, -21.5 percent, 27.5 percent, and 18.5 percent for four of the last five years. Assume the average return of the stock over this period was 11 percent. a. What was the stock's return for the missing year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the standard deviation of the stock's returns? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Missing return b. Standard deviation % %
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