1 2 3 4 -19.9% 16.7% 19% -50% 5 6 7 43.2% 1.3% -16.4% ) What is the average annual return over the ten-year period (as a percent)? % 8 9 10 -45.5% 45.1% -4% ) What is the standard deviation of annual returns over the ten-year period (as a percent)? (Round your answer to tw decimal places.)
1 2 3 4 -19.9% 16.7% 19% -50% 5 6 7 43.2% 1.3% -16.4% ) What is the average annual return over the ten-year period (as a percent)? % 8 9 10 -45.5% 45.1% -4% ) What is the standard deviation of annual returns over the ten-year period (as a percent)? (Round your answer to tw decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
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Transcribed Image Text:Ten annual returns are listed in the following table.
1
-19.9%
2
%
3
4
16.7% 19% -50%
% to
5
6
(a) What is the average annual return over the ten-year period (as a percent)?
%
7
%
43.2% 1.3% -16.4%
8
9
-45.5% 45.1%
(b) What is the standard deviation of annual returns over the ten-year period (as a percent)? (Round your answer to two
decimal places.)
10
-4%
(c) What is the 95% confidence interval on the return of this stock next year (as a percent) if the past average returns
and volatility of returns are unbiased estimators of expected returns and future volatility. (Round your answers to two
decimal places.)
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