Louisiana Monroe × Aplia: Student Question G chegg Study l Guided Solutio × apli
ID: 2807388 • Letter: L
Question
Louisiana Monroe × Aplia: Student Question G chegg Study l Guided Solutio × aplia.com/af/servlet/quiz?quiz action takeQuiz&quiz;_probGuid QNAPCOA801010000003e431320050000&ctxebrown1-0012;&cks; Five years of realized returns for BLM are given in the following table. Remember: While BLM was started 40 years ago, its common stock has been publicly traded for the past 25 years 1. 2. The returns on its equity are calculated as arithmetic returns 3. The historical returns for BLM for 2012 to 2015 are: 2012 2013 2014 2015 2016 Stock return 13.75% 9.35% 16.50% 23.10% 7.15% Given the preceding data, the average realized return on BLM's stock is 34.93% 27.94% 43.31% 13.97% The preceding data series represents standard deviation of BLM's historical returns is of BLM's hi tor1 pased on this conclusion, the If investors expect the average realized return from 2012 to 2016 on BLM's stock to continue into the future, its coefficient of variation (CV) will be Continue without saving 0 88g 3 5 8Explanation / Answer
1)
Return = (13.75% + 9.35% + 16.5% + 23.1% + 7.15%) / 5 = 13.97% (Option D)
2)
A Sample (Option B)
3)
SD = SQRT( ( (13.75%-13.97%)2 + (9.35%-13.97%)2 + (16.5%-13.97%)2 + (23.1%-13.97%)2 + (7.15%-13.97%)2 ) / 5 )
= 5.62% (Option A)
4)
CV = 5.62% / 13.97% = 0.38 (Option D)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.