Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Problem:

Over the past five years, a stock returned 8.3 percent, -32.5 percent, -2.2 percent, 46.9 percent, and 11.8 percent, respectively.

Required:

Question: What is the variance of these returns?

Select one:

  • 0.071188
  • 0.076290
  • 0.081504
  • 0.082547
  • 0.091306

Note: Explain the solution in detail.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91174344

Have any Question?


Related Questions in Basic Finance

Suppose your firm is considering investing in a project

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback and discounte ...

You are an analyst following a large value firm the beta of

You are an analyst following a large "value" firm. The beta of the firm's stock is 1. The firm uses the capital asset pricing model for project valuation: for typical projects the firm uses a cost of equity capital equal ...

It is january 1 2018 and you have just won the lottery

It is January 1, 2018 and you have just won the lottery which pays you $1,000 per month for 50 years. It begins paying out on January 31st, 2025, which is after a seven year wait. Assuming an interest rate of 6% (annual ...

An executor may value assets as of the date of death or the

An executor may value assets as of the date of death or the alternate valuation date 6 months after death. Assuming the estate is eligible to elect, and the executor elects, the alternate valuation date, which of the fol ...

1 serenas skincare sells sunscreen in orlando florida the

1.) Serena's Skincare sells Sunscreen in Orlando, Florida. The annual return for the company is affected by the average temperature of the year. When the weather is cold (25% of the year), normal (40% of the year) and ho ...

Question - the stock of the faraway travel co is selling

Question - The stock of the Faraway Travel Co. is selling for $28 a share. You put in a limit buy order at $24 for one month. During the month the stock price declines to $20, then jumps to $36. Ignoring commissions, wha ...

Suppose a firm pays total dividends of 1100000 out of net

Suppose a firm pays total dividends of $1,100,000 out of net income of $5.5 million. What would the firm's payout ratio be?  (Round your answer to 2 decimal places.)

Your goal is to save 1000000 at retirement in 5 years you

Your goal is to save $1,000,000 at retirement in 5 years. You expect you can earn 12.50% over the next 5 years. How much money do you have to save on an annual basis to reach your goal?

Exerciseto hedge a short share position one can short the

Exercise To hedge a short share position, one can short the put option on the share. • What is the investor's intention in selling the put option? • What does the strike indicate when the trader has zero risk tolerance? ...

Question - so far things have gone well with dr bueller

Question - So far, things have gone well with Dr. Bueller. Before you wrap up your meetings and he begins investing, you decide to spend a little time sharing information with him about using derivatives to manage risk a ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As