Question

You have calculated the following returns for an individual stock: Periods               Return Month 1            &nbs

You have calculated the following returns for an individual stock:

Periods               Return

Month 1                 4.09%

Month 2                 3.28%

Month 3                 14.98%

Month 4                 5.38%

Month 5                  -4%

What is the stock's expected rate of return?

Please round your answer to the fourth decimal. If your answer is 1.11%, you should input "0.0111".

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Answer #1

rate positively ..

Month Return
1 4.09%
2 3.28%
3 14.98%
4 5.38%
5 -4%
Total 23.73%
Expected return = Total return / number of month
23.73%/5
4.75%
Ans = 4.75%
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