You find a certain stock that had returns of 13 percent, -21.5 percent, 27.5 percent, and 18.5 percent for four of the last five years. Assume the average return of the stock over this period was 11 percent. a. What was the stock's return for the missing year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the standard deviation of the stock's returns? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Missing return b. Standard deviation % %
You find a certain stock that had returns of 13 percent, -21.5 percent, 27.5 percent, and 18.5 percent for four of the last five years. Assume the average return of the stock over this period was 11 percent. a. What was the stock's return for the missing year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the standard deviation of the stock's returns? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Missing return b. Standard deviation % %
Chapter13: Direct Foreign Investment
Section: Chapter Questions
Problem 1IEE
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Transcribed Image Text:You find a certain stock that had returns of 13 percent, -21.5 percent, 27.5 percent, and 18.5 percent for four of the last five years.
Assume the average return of the stock over this period was 11 percent.
a. What was the stock's return for the missing year?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
b. What is the standard deviation of the stock's returns?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
a. Missing return
b. Standard deviation
%
%
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