Answer is Option B. -1.25%
Assume Amazon share price to be $100 at start of the year.
After Quarter 1, price = $100 * (1 + 5%) = $105
After Quarter 2, price = $105 * (1 - 5%) = $99.75
After Quarter 3, price = $99.75 * (1 + 10%) = $109.7525
After Quarter 4, price = $109.7525 * (1 - 10%) = $98.7525
Return = (Final Price - Initial Price)/Initial Price
Return = ($98.7525 - $100)/$100 = -1.2475% = -1.25%
11.2-10 Question Help Amazon.com stock prices gave a realized return of 5%, -5%, 10%, and -10%...
Amazon.com stock prices gave a realized return of 5%,-596, 996, and-9% over four successive quarters. What is the annual realized return for Amazon.com for the year? A. B. OC. D. 1.06% 0.00% 2.12% -1.06%
Amazon.com stock prices gave a realized return of 15%, 15%, -15%, and-15% over four successive quarters. for the year? What is the annual realized return for Amazon.com OA. O B. O c. -445% -7.12% -5.12% D. 0%
This Question: 1 pt 22 of 24 (0 complete) Suppose that a stock gave a realized return of 15% over a two-year time period and a 5% return over the third year. The geometric average annual return is: O A. 11.57% OB. 9.83% O c. 5.78% OD. 8.67%
Suppose that a stock gave a realized retum of 20% over a two-year time period and a 10% retum over the third year. The geometric average annual return is: O A. 14.08% OB. 16.57% O c. 12.43% OD. 8.28%
4. Suppose that a stock gave a realized return of 20% over a two-year time period and a 10% return over the third year. The geometric average annual return is ________. (2 points) A) 8.28% B) 12.43% C) 14.08% D) 16.57% 5. Bear Stearns' stock price closed at $98, $103, $58, $29, $4 over five successive weeks. The weekly standard deviation of the stock price calculated from this sample is ________. (2 points) A) $30.07 B) $49.40 C) $42.96 D)...
Ford Motor Company had realized returns of 10%, 20%, -10%, and -10% over four quarters. What is the quarterly standard deviation of returns for Ford? O A. 13.5% O B. 12.75% O C. 15% OD. 14.25%
P7-3 (similar to) Question Help (Calculating rates of return) The common stock of Placo Enterprises had a market price of $9.22 on the day you purchased it just one year ago. During the past year the stock had paid a dividend of $1.27 and closed at a price of $11.44. What rate of return did you earn on your investment in Placo's stock? The rate of return you earned on your investment in Placo's stock is %. (Round to two...
11.2-33 Question Help The average annual return over the period 1886-2006 for stocks that comprise the S&P 500 is 5%, and the standard deviation of returns is 15%. Based on these numbers, what is a 95% confidence interval for 2007 returns? A. -25%, 25% В. — 15%, 25% С. - 12.5%, 17.5% D. -25%, 35%
(10%) Question 2: The ABC stock return and the XYZ stock return depend on the state of economy: State of the economy Probability of the state 0.20 0.35 0.45 ABC stock return -0.10 -0.05 0.00 XYZ stock return -0.05 0.00 0.00 What is the correlation between the ABC stock return and the XYZ stock return? a) 0.0625 b) 0.815 c) 1.0 d) 0.0 e) 0.521
which of the following statements is false? A. The realized return is the total return we earn from dividends and capital gains, expressed as a percentage of the initial stock price. B. The expected return is the return that actually occurs over a particular time period. C. The average annual return of an investment during some historical period is simply the average of the realized returns for each year. D. If you hold the stock beyond the date of the...