You find a certain stock that had returns of 15 percent, -17 percent, 23 percent, and 11 percent for four of the last five years. Assume the average return of the stock over this period was 10 percent. a. What was the stock's return for the missing year? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the standard deviation of the stock's returns? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. Answer is complete but not entirely correct. Missing return Standard deviation 32.50 % 52.50 %

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
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You find a certain stock that had returns of 15 percent, -17 percent, 23 percent, and 11
percent for four of the last five years. Assume the average return of the stock over this
period was 10 percent.
a. What was the stock's return for the missing year? (Do not round Intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
b. What is the standard deviation of the stock's returns? (Do not round Intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
a.
b.
Answer is complete but not entirely correct.
Missing return
Standard
deviation
32.50
%
52.50 %
Transcribed Image Text:You find a certain stock that had returns of 15 percent, -17 percent, 23 percent, and 11 percent for four of the last five years. Assume the average return of the stock over this period was 10 percent. a. What was the stock's return for the missing year? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the standard deviation of the stock's returns? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. Answer is complete but not entirely correct. Missing return Standard deviation 32.50 % 52.50 %
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