None You've observed the following returns on Yamauchi Corporation's stock over the pastfive years: -26.1 percent, 14.4 percent, 31.8 percent, 2.7 percent, and 21.7 percent.a. What was the arithmetic average return on the stock over this five-year period? (Donot round intermediate calculations and enter your answer as a percent roundedto 2 decimal places, e.g., 32.16.)b. What was the variance of the returns over this period? (Do not round intermediatecalculations and 'round your answer to 6 decimal places, e.g., 32.161616.)c. What was the standard deviation of the returns over this period? (Do not roundintermediate calculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)a.Arithmetic average return%b.VarianceC.Standard deviation%

Step 1: The calculation of the arithmetic average return, variance, and standard deviation…

Answered: You've observed the following returns…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD

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You’ve observed the following returns on Yamauchi Corporation’s stock over the past five years: –29.4 percent, 16.6 percent, 36.2 percent, 3.8 percent, and 22.8 percent. a. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) c. What was the standard deviation of the returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
You've observed the following returns on Yamauchi Corporation's stock over the past five years: -28.2 percent, 15.8 percent, 34.6 percent, 3.4 percent, and 22.4 percent. a. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) c. What was the standard deviation of the returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Arithmetic average return b. Variance C. Standard deviation % % Save & Exit Submit
You've observed the following returns on Pine Computer's stock over the past five years: -26.7 percent, 14.8 percent, 32.6 percent, 2.9 percent, and 21.9 percent. a. What was the arithmetic average return on the stock over this five-year period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the variance of the returns over this period? Note: Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616. c. What was the standard deviation of the returns over this period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Arithmetic average return b. Variance c. Standard deviation 96 %
Meridian Manufacturing, Inc.'s stock has had the following annual returns over the past 5 years: +14.2%; -9.8%. +32.6%, -19.8%, and +27.9%. Using the proper method for calculating investment returns, what is the 5-year return on Meridian Manufacturing's stock? ROUND YOUR ANSWER TO ONE DECIMAL PLACE, AND DO NOT ENTER THE PERCENT SIGN (i.e. 10.5% should be entered as 10.5)
Suppose a stock has generated the following annual returns: 11.4%, -7.9% and 5.4%. What was its total return during that period? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32).
The rates of return on Cherry Jalopies, Incorporated, stock over the last five years were 16 percent, 11 percent, −1 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company’s stock were 16 percent, 22 percent, −1 percent, 5 percent, and 12 percent. What was the arithmetic average return on each stock over this period? Note: Enter your answers as a percent rounded to 1 decimal place.
The rates of return on Cherry Jalopies, Inc., stock over the last five years were 14 percent, 11 percent, -3 percent, 2 percent, and 6 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 15 percent, -9 percent, 4 percent, and 11 percent. What was the arithmetic average return on each stock over this period? (Enter your answers as a percent rounded to 1 decimal place.) Cherry average return % Straw average return %
The rates of return on Cherry Jalopies, Inc., stock over the last five years were 18 percent, 11 percent, −1 percent, 2 percent, and 11 percent. What is the geometric return for Cherry Jalopies, Inc.? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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Suppose a stock has generated the following annual returns: 13.6%, -12.1% and 7.6%. What was its compound average annual return? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32).
Percentages need to be entered in decimal format, for instance 3% would be entered as .03.) Stock A and Stock B produced the returns shown on the spreadsheet during the past five years (Year -1 is one year ago, Year -2 is two years ago, and so forth). According to the spreadsheet, what is the average rate of return for each stock during the past five years? (Refer to Row 26 for average rate of return.) Based on the information in the spreadsheet, what is the coefficient of variation for each stock and for the portfolio? (Refer to Row 28 for the coefficient of variation.) If you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? Why? Consider a third stock, Stock C, that is available for inclusion in the portfolio. Stock C produced the returns shown in the table during the past five years (add this to column D under Stock C). What is the average return, standard deviation, and coefficient of variation for Stock C? (Refer to Row 27 for…
Assume the returns of a stock for the previous five years are as follows: 8%, 12%, - 4%, 9% and 14%. a. What is the arithmetic average? What is the geometric average? b. What is the historical standard deviation of the returns of this stock? c. Another stock in the same industry has had the following year end prices and dividends: Year Price $60.18 73.66 94.18 89.35 78.49 95.05 Dividend 1 $.60 .64 .72 .80 1.20 4 What are the arithmetic and geometric returns for the stock? d. You buy a stock for $62.50 per share and hold it for one year. During the year, the stock paid a dividend of $1.50 and the year-end stock price was $71.25. What was your holding period return on the stock? Also, divide the return of the stock into its two components: the dividend yield and the capital gains component. e. Explain the three forms of market efficiency and its significance as it relates to trading strategies. T23t56

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