3. XYZ stock price and dividend history are as follows: Year Beginning-of-year Price Dividend paid...

50.1K

Verified Solution

Question

Finance

3. XYZ stock price and dividend history are as follows:

Year Beginning-of-year Price Dividend paid at Year-End

2010 $100 $4

2011 $110 $2

2012 $90 $3

2013 $95 $1

What is the arithmetic average rate of return for the period from the beginning of 2010 to the end of 2012? Your answer should be in percentages and accurate to the hundredths.

4. Suppose that the stock return follows a normal distribution with mean 15% and standard deviation 25%. What is the 5% VaR (value-at-risk) for this stock?

Your answer should be in percentage points and accurate to the hundredths.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students