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 stock 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 return 25.5 % What is the standard deviation of the stock's return? (Do not round intermediate calculations. Round the final answer to 2 decir places.) Standard deviation. 17109

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter9: Stocks And Their Valuation
Section: Chapter Questions
Problem 13P: CONSTANT GROWTH You are considering an investment in Justus Corporations stock, which is expected to...
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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 the
stock 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 return
25.5 %
*
What is the standard deviation of the stock's return? (Do not round intermediate calculations. Round the final answer to 2 decimal
places.)
Standard deviation
17.4 %
Transcribed Image Text: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 the stock 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 return 25.5 % * What is the standard deviation of the stock's return? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Standard deviation 17.4 %
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