1) Assume the returns for Stock A for last 6 years was= 4%, 7%, 8%, -2%, 9%, and 7%. find out the standard deviation of returns.
2) Assume real rate is= 4.53% and inflation rate is= 4.12%. Answer for nominal rate.
3) Based on the information given below, Compute the expected returns:
Prob Return
Recession30% 3.6%
Boom 70% 3%
4) One year ago, super star closed-end fund had NAV of= $10.40 and was selling at the18% Discount. Today its NAV is= $11.69 and it is priced at a= 4% premium. In the year Super start paid dividends of= $0.40 and had the capital gains distribution of= $0.95. On basis of above information find out each of the following:
i) Superstars NAV-based holding period for year
ii) Superstars market based holding period return for year. Did market premium/Discount hurt or add value to investors retur? Brief answer why?
iii) Repeat market based holding period return computations, except this time suppose fund started year at 18% premium and ended it at 4% discount. (Suppose beginning and ending NAV’s remain at= $10.40 and= $11.69 respectively. Is there any change in this measure of return? Describe why?