Problem 12-14 Calculating Returns and Variability (LO1)You find a certain stock that had returns of 10.3 %, -17.3%, 22.3%, and 18.3% for four of the last five years. The average return of thestock over this period was 11.6%. Assume the face value of the bond is $1,000.What was the stock's return for the missing year? (Round the final answer to 1 decimal place.)Stock's return25.5 %*What is the standard deviation of the stock's return? (Do not round intermediate calculations. Round the final answer to 2 decimalplaces.)Standard deviation17.4 %

Average return is used in the market to give idea about the volatility of the stock market and…

Answered: You find a certain stock that 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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