26. The historical stock returns for GAF, Inc. are listed below: Year -Annual Stock Return 2013 -12% 2014 14% 2015 35% 2016 2% 2017 -16% 2018 8% 2019 0% 2020 34% 2021 12% 2022 6% What is the standard deviation of returns for GAF, Inc. stock over the 10-year time period? (Compute the standard deviation assuming this is a population of returns, not a sample – that is, use the procedure described in the textbook for calculating the standard deviation of a series of stock returns). 27. The end of year stock price and the dividend paid each year for Maxwell, Inc. stock for years 0 through 6 are listed in the table below: Year -End of Year Stock Price- Dividend 0 $12.00 $ 0 1 $14.86 $1.80 2 $7.95 $1.88 3 $8.00 $1.91 4 $12.64 $2.02 5 $18.23 $2.02 6 $21.01 $2.24 Based on this information, what was the average annual return of Maxwell, Inc. stock for years 1 through 6?

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Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

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Problem 4FPE: The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million...

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26. The historical stock returns for GAF, Inc. are listed below:

Year -Annual Stock Return
2013 -12%
2014 14%
2015 35%
2016 2%
2017 -16%
2018 8%
2019 0%
2020 34%
2021 12%
2022 6%

What is the standard deviation of returns for GAF, Inc. stock over the 10-year time period? (Compute the

standard deviation assuming this is a population of returns, not a sample – that is, use the procedure described
in the textbook for calculating the standard deviation of a series of stock returns).
27. The end of year stock price and the dividend paid each year for Maxwell, Inc. stock for years 0 through 6 are
listed in the table below:

Year -End of Year Stock Price- Dividend
0 $12.00 $ 0
1 $14.86 $1.80
2 $7.95 $1.88
3 $8.00 $1.91
4 $12.64 $2.02
5 $18.23 $2.02
6 $21.01 $2.24

Based on this information, what was the average annual return of Maxwell, Inc. stock for years 1 through 6?

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