Directions: Compute the total returns, the average of returns, and the standard deviation of the following stocks: (1 1) 2) EGRH Inc. DMP, Ltd. AVERAGE OF RETURNS (x) YEAR AVERAGE OF RET S STOCK RETURN RICE YEA Jan-2021 P8.30 Feb-2021 P8.60 Mar-2021 P9.14 Jan-2021 P0.088 Feb-2021 P0.090 Mar-2021 PO.097 Apr-2021 P0.189 May-2021 P0.164 Jun-2021 PO.495 Apr-2021 P13.30 May-2021 P137 Jun-2021 P 0 Jul-2021 PO.280 Jul-2021 6.94 Aug-2021 PO.455 Aug-20213.70 Sep-2 P14.88 Sep-2021 P0.390 Oct-2021 P0.375 0 21 P15.30 Nov-2021 PO.325 -2021 P14.30 Dec-2021 P0.330 Dec-2021 P15.52 SD (8)= STOCK RETURN PRICE (Xi-x)2 SD (8) = (XI-X)2
Directions: Compute the total returns, the average of returns, and the standard deviation of the following stocks: (1 1) 2) EGRH Inc. DMP, Ltd. AVERAGE OF RETURNS (x) YEAR AVERAGE OF RET S STOCK RETURN RICE YEA Jan-2021 P8.30 Feb-2021 P8.60 Mar-2021 P9.14 Jan-2021 P0.088 Feb-2021 P0.090 Mar-2021 PO.097 Apr-2021 P0.189 May-2021 P0.164 Jun-2021 PO.495 Apr-2021 P13.30 May-2021 P137 Jun-2021 P 0 Jul-2021 PO.280 Jul-2021 6.94 Aug-2021 PO.455 Aug-20213.70 Sep-2 P14.88 Sep-2021 P0.390 Oct-2021 P0.375 0 21 P15.30 Nov-2021 PO.325 -2021 P14.30 Dec-2021 P0.330 Dec-2021 P15.52 SD (8)= STOCK RETURN PRICE (Xi-x)2 SD (8) = (XI-X)2
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
Related questions
Concept explainers
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Question

Transcribed Image Text:Directions: Compute the total returns, the average of returns, and the standard deviation of
the following stocks:
2)
1)
EGRH Inc.
DMP, Ltd.
AVERAGE
OF
RETURNS (XI-X)²
(x)
YEAR
AVERAGE
OF
RETS
STOCK RETURN
RICE
YEA
(x₁)
Jan-2021
P8.30
Feb-2021 P8.60
Jan-2021 P0.088
Feb-2021 P0.090
Mar-2021 P0.097
Apr-2021 PO.189
May-2021 PO.164
Mar-2021 P9.14
Apr-2021 P13.30
May-2021 P13
Jun-2021 P0.495
Jun-2021 P 0
Jul-2021 PO.280
Jul-2021
6.94
Aug-2021 P0.455
Aug-202
P13.70
Sep-2021 P0.390
Sep-2
P14.88
Oct-2021 P0.375
0 21
P15.30
Nov-2021 PO.325
-2021
P14.30
Dec-2021 P0.330
Dec-2021
P15.52
SD (8) =
3)
STOCK RETURN
PRICE (x₁)
GSM Inc.
YEAR
Jan-2021 P57.70
Feb-2021 P52.90
Mar-2021 P50.95
Apr-2021 P58.2
May-2021 P7 05
Jun-2021
34.75
Jul-2021 P85.00
Aug-20
P105.00
Sep-21
P114.00
O 2021 P101.00
N-2021 P100.40
Dec-2021 P113.80
SD (8) =
STOCK RETURN
CE
(x₁)
AVERAGE
OF
RETINS
²)
(x₁-x)²
SD (8) =
ACEE, Inc.
YEA
Jan-2021 P156
Feb-2021 P20.80
Mar-2021 P22.50
Apr-2021 P18.90
May-2021 P17
Jun-2021 P76
Jul-2021 16.38
Aug-2021 P15.00
Sep-202 P15.40
Oct-201
P18.62
Nov 2021
P22.95
D-2021
P39.00
STOCK RETURN
PRICE
(x₁)
SD (8) =
AVERAGE
OF
RETUS
(XI-x)2
(Xi-x)2
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