Corporate Finance (The Mcgraw-hill/Irwin Series in Finance  Insurance  and Real Estate)
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Chapter 10, Problem 9QP

a)

Summary Introduction

To determine: The returns and variability

Introduction:

The term return refers to a profit or gain made on an investment that is usually expressed in terms of percentage or dollars. The percentage total return shows the overall performance and efficiency of the amount invested.

The arithmetic average return is the average amount of money made by a particular investment. The variance determines the variances among the yearly returns of the stock. The standard deviation is simply the square root of calculated variance that measures the volatility of an investment.

(b)

Summary Introduction

To determine: variance of company’s stock and standard deviation of company’s stock.

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Chapter 10 Solutions

Corporate Finance (The Mcgraw-hill/Irwin Series in Finance Insurance and Real Estate)

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