HB Harvard Business Publib My Questions bartlebB Chapter 7 - MBAD-503Lauren Stoney | Net Im+HBMindTap - CengagXAhttps://ng.cengage.com/static/nb/ui/evo/index.html?elSBN=9781337900010&id- 5432476578snapshotld=1286803&CENGAGE MINDTAPQ Search this courseXCh 08: Assignment - Risk and Rates of ReturnమాFive years of realized returns for CCC are given in the following table. Remember:1. While CCC was started 40 years ago, its common stock has been publicly traded for the past 25A-Zyears.2. The returns on its equity are calculated as arithmetic returns.Office3. The historical returns for CCC for 2012 to 2015 are:20132012201420152016Stock return13.75%9.35%16.50%23.10%7.15%Given the preceding data, the average realized return on CCC's stock isof CCC's historical returns. Based on this conclusion, theThe preceding data series representsstandard deviation of CCC's historical returns isIf investors expect the average realized return from 2012 to 2016 on CCC's stock to continue into the future, itscoefficient of variation (CV) will beX

Question
Asked Sep 19, 2019
HB Harvard Business Publi
b My Questions bartleb
B Chapter 7 - MBAD-503
Lauren Stoney | Net Im
+
HB
MindTap - CengagX
Ahttps://ng.cengage.com/static/nb/ui/evo/index.html?elSBN=9781337900010&id- 5432476578snapshotld=1286803&
CENGAGE MINDTAP
Q Search this course
X
Ch 08: Assignment - Risk and Rates of Return
మా
Five years of realized returns for CCC are given in the following table. Remember:
1. While CCC was started 40 years ago, its common stock has been publicly traded for the past 25
A-Z
years.
2. The returns on its equity are calculated as arithmetic returns.
Office
3. The historical returns for CCC for 2012 to 2015 are:
2013
2012
2014
2015
2016
Stock return
13.75%
9.35%
16.50%
23.10%
7.15%
Given the preceding data, the average realized return on CCC's stock is
of CCC's historical returns. Based on this conclusion, the
The preceding data series represents
standard deviation of CCC's historical returns is
If investors expect the average realized return from 2012 to 2016 on CCC's stock to continue into the future, its
coefficient of variation (CV) will be
X
help_outline

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HB Harvard Business Publi b My Questions bartleb B Chapter 7 - MBAD-503 Lauren Stoney | Net Im + HB MindTap - CengagX Ahttps://ng.cengage.com/static/nb/ui/evo/index.html?elSBN=9781337900010&id- 5432476578snapshotld=1286803& CENGAGE MINDTAP Q Search this course X Ch 08: Assignment - Risk and Rates of Return మా Five years of realized returns for CCC are given in the following table. Remember: 1. While CCC was started 40 years ago, its common stock has been publicly traded for the past 25 A-Z years. 2. The returns on its equity are calculated as arithmetic returns. Office 3. The historical returns for CCC for 2012 to 2015 are: 2013 2012 2014 2015 2016 Stock return 13.75% 9.35% 16.50% 23.10% 7.15% Given the preceding data, the average realized return on CCC's stock is of CCC's historical returns. Based on this conclusion, the The preceding data series represents standard deviation of CCC's historical returns is If investors expect the average realized return from 2012 to 2016 on CCC's stock to continue into the future, its coefficient of variation (CV) will be X

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check_circleExpert Solution
Step 1

Calculation of Average Realized Return, Standard Deviation and Coefficient of Variation:

The Average Realized Return is 13.97%, Standard Deviation is 6.28% and Coefficient of Variation is 0.45.  The preceding data series represents the Sampl...

C
А
В
Stock Return Square of Returns
13.75%
1
Year
2
2012
0.00000484
3
2013
9.35%
0.00213444
2014
16.50%
0.00064009
4
2015
2016
Average Realized Return
23.10%
0.00833569
0.00465124
7.15%
6
7
13.97%
8
Variance
0.00394158
Standard Deviation
10
Coefficient of Variation
6.28%
9
0.45
help_outline

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C А В Stock Return Square of Returns 13.75% 1 Year 2 2012 0.00000484 3 2013 9.35% 0.00213444 2014 16.50% 0.00064009 4 2015 2016 Average Realized Return 23.10% 0.00833569 0.00465124 7.15% 6 7 13.97% 8 Variance 0.00394158 Standard Deviation 10 Coefficient of Variation 6.28% 9 0.45

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