The following stock price information has been collected for stock XYZ: Closing price End of year 2023 2022 2021 $127 $119 $123 2020 2019 $118 $121 XYZ has a correlation with the market portfolio of 0.60. The S&P 500 market portfolio has a standard deviation of 20%. An investor purchased XYZ at the end of 2019 (when it was $121). What is the average annual holding period return (geometric mean) for this investor if he/she held XYZ until the end of 2023? 1.22% 6.26% None are correct 2.78%
The following stock price information has been collected for stock XYZ: Closing price End of year 2023 2022 2021 $127 $119 $123 2020 2019 $118 $121 XYZ has a correlation with the market portfolio of 0.60. The S&P 500 market portfolio has a standard deviation of 20%. An investor purchased XYZ at the end of 2019 (when it was $121). What is the average annual holding period return (geometric mean) for this investor if he/she held XYZ until the end of 2023? 1.22% 6.26% None are correct 2.78%
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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Transcribed Image Text:The following stock price information has been collected for stock XYZ:
Closing price
End of year
2023
2022
2021
$127
$119
$123
2020
2019
$118
$121
XYZ has a correlation with the market portfolio of 0.60. The S&P 500 market portfolio has a standard deviation of 20%. An investor purchased
XYZ at the end of 2019 (when it was $121). What is the average annual holding period return (geometric mean) for this investor if he/she held
XYZ until the end of 2023?
1.22%
6.26%
None are correct
2.78%
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