Question

- (3) (4) (5) (1) Price | $35 (2) | Return L Year 2000 2001 2002 2003 $36 $37 $38 a) Find Returns for each year b) Find averaFinance

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Answer #1

a)

The return for year 2000 = 0%

$36 - $35 Returns for 2001 = 100 $35X

Returns for 2001 = 2.86%

$37 - $36 Returns for 2002 = 100 $36X

Returns for 2002 = 2.78%

$38 - $37 Returns for 2003 = $37 X 100

Returns for 2003 = 2.70%

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b)

Average return = 0% + 2.86% +2.78% +2.70% - x 100

Average return = 2.09%

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c)

(0 -0.0209)2 + (0.0286 -0.0209)2 + (0.0278 -0.0209)2 + (0.0270 -0.0209) Variance =

Variance = 0.00014523

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d)

Standard deviation = Vvariance

Standard deviation = 0.00014523

Standard deviation = 0.012051141

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Year Price Return %
2000 $35 0
2001 $36 2.86
2002 $37 2.78
2003 $38 2.70
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