The preceding data series represents annual time series of HDS's historical returns. Based o this conclusio, the standard deviation of HDS's historical returns is 4.57.
In investors expect the average realized return from 2012 to 2016 on HDS's stock to continue into the future, its coefficient of variation (CV) will be 0.45.
The Calculations with relevant formula shown below:
S.No. | Stock Return (R ) | R-R bar | (R - R Bar)^2 |
1 | 10 | -0.16 | 0.0256 |
2 | 6.8 | -3.36 | 11.2896 |
3 | 12 | 1.84 | 3.3856 |
4 | 16.8 | 6.64 | 44.0896 |
5 | 5.2 | -4.96 | 24.6016 |
Sum | 83.392 | ||
Average Return (R Bar) | 10.16 | Variance | 20.848 |
Standard Deviation | 4.565961016 |
Coefficient of Variation | Standard deviation/Average Return | 0.449405612 |
to estimate future results. Analysts across companies use realized stock returns to estimate the risk of...
Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Happy Dog Soap Inc. (HDS): Five years of realized returns for HDS are given in the following table. Remember: 1. While HDS was started 40 years ago, its common stock has been publicly traded for the past 25 years....
3. Measuring stand-alone risk using realized (historical) data Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Happy Dog Soap Inc. (HDS): Five years of realized returns for HDS are given in the following table. Remember: 1. While HDS was started 40 years ago, its common stock has...
Five years of realized returns for HDS are given in the following table. Remember: While HDS was started 40 years ago, its common stock has been publicly traded for the past 25 years. The returns on its equity are calculated as arithmetic returns. The histor ical returns for HDS for 2012 to 2015 are: 2012 2013 2014 2015 2016 18.75% 12.75% 22.50% 31.50% 9.75% Given the preceding data, the average realized return on HDS's stock is ----- H The preceding...
Measuring stand-alone risk using realized (historical) data Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Happy Dog Soap Inc. (HDS): Five years of realized returns for HDS are given in the following table. Remember: 1. While HDS was started 40 years ago, its common stock has been...
Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Five years of realized returns for ASA Robotics Inc. are given in the following table. Note that while ASA Robotics was started 40 years ago, its common stock has been publicly traded for the past 35 years. 2011 2012 2013 2014 2015 Stock Return 15.00% 10.20% 18.00% 25.20% 7.80% What was the average realized...
Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future resu Analysts across companiess use realized stock returns to estimate the risk of a stock. Consider the case of Falcon Freight Inc. (FF): Five years of realized returns for FF are given in the following table. Remember: 1. While FF was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2....
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1. Measuring stand-alone risk using realized (historical) data Returns earned over a given time Analysts across companies alled returns. Historical data on realized returns is often used to estimate future results. estimate the risk of a stock. Consider the case of Celestial Five years of realized returns llowing table. Remember: has been publicly traded for the past 25 years. 3. The 2014 17.50% Stock return Given the preceding data, the average CCC's stocks of CCC's historical returns. Based on this...
Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Blue Ulama Mining Inc. (BLM): Five years of realized returns for BLM are given in the following table. Remember: 1. While BLM was started 40 years ago, its common stock has been publicly traded for the past 25 years....
2. Measuring standalone risk using realized data Aа Aa Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock Consider the case of Blue Llama Mining Inc. (BLM): Five years of realized returns for BLM are given in the following table. Remember: 1. While BLM was started 40 years ago, its common stock...