The Dow Jones Industrial Average had the following annual returns:YearReturn2019 22.3%20207.3%202119%2022-8.7%Using just these last 4 years of data, what is the expected return for the Dow Jones?What is the standard deviation of the returns? Please show and explain your work.

Given : Annual return percentages for Dow Jones in 4 years are given as,22.3%, 7.3%, 19%,-8.7% Step…

Answered: The Dow Jones Industrial Average had…

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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The last four years of returns for a stock are as follows: Year Return 1 - 4.3% 2 28.1% 3 11.6% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? a. What is the average annual return? The average return is%. (Round to two decimal places.) 4 3.7%
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The Dow Jones Industrial Average had the following annual returns: Year Return 2019 22.3% 2020 7.3% 2021 19% 2022 -8.7% Using just these last 4 years of data, what is the expected return for the Dow Jones? What is the standard deviation of the returns? Please show and explain your work.