ly Assignment VI i 3 ts eBook Print References Variance 0.3203 11.6 % Saved 3 You've observed the following returns on Regina Computer's stock over the past five years: 7%, -12%, 11%, 38%, and 14%. a. What was the arithmetic average return on Regina's stock over this five-year period? (
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
ly Assignment VI i 3 ts eBook Print References Variance 0.3203 11.6 % Saved 3 You've observed the following returns on Regina Computer's stock over the past five years: 7%, -12%, 11%, 38%, and 14%. a. What was the arithmetic average return on Regina's stock over this five-year period? (Round the final answer to 1 decimal place. Average return b-1. What was the variance of Regina's returns over this period? (Do not round intermediate calculations. Round the final answer to 5 decimal places.) 17.9 % Help Save & Exit Check my b-2. What was the standard deviation of Regina's returns over this period? (Do not round intermediate calculations. Round the final answer to 1 decimal place.) Standard deviation
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