Over the last four weeks, the stock price for Royal Caribbean has closed at $40.00, $44.00,...
Over the last four weeks, the stock price for Royal Caribbean has closed at $40.00, $44.00, $40.00, and $36.00, respectively. Based on these prices, what is the expected return and standard deviation of this stock? (Assume that Royal Caribbean has not paid any dividends during this period.)
Homework Answers
Expected return=(40/44-1+44/40-1+40/36-1)/3=4.007%
Standard Deviation=sqrt((40/44-1-4.007%)^2+(44/40-1-4.007%)^2+(40/36-1-4.007%)^2)/sqrt(3-1)=11.356%
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