YearReturnThe last four years of returns for a stock are as follows:1- 3.6%227.6%3411.9%4.1%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?

Given: The last four years of return for a stock:Year1234 Return-3.60%27.60%11.90%4.10% a.…

Answered: Year Return The last four years of…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter6: Risk And Return

Section: Chapter Questions

Problem 4P: An analyst gathered daily stock returns for Feburary 1 through March 31, calculated the Fama-French...

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An analyst gathered daily stock returns for Feburary 1 through March 31, calculated the Fama-French factors for each day in the sample (SMBt and HMLt), and estimated the Fama-French regression model shown in Equation 6-21. The estimated coefficients were ai = 0, bi = 1.2, ci = 0.4, and di = 1.3. On April 1, the market return was 10%, the return on the SMB portfolio (rSMB) was 3.2%, and the return on the HML portfolio (rHML) was 4.8%. Using the estimated model, what was the stocks predicted return for April 1?
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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Year Return The last four years of returns for a stock are as follows: 1 - 3.6% 2 27.6% 3 4 11.9% 4.1% 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?