A stock price is currently $60. It is known that returns on the stock are normally distributed with mean 12% and variance 16% per annum. What will be percentage change in the stock price in 5-days?
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- A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate, g, throughout time. The stock’s required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of gL?A stock price is currently $60. It is known that returns on the stock are normally distributed with mean 12% and variance 16% per annum. What will be percentage change in the stock price in 5-days? ( explain all question point properly with address waise and type answer. )The last four years of returns for a stock are as follows: Year Return 1 - 4.3% 2 28.1% 3 11.6% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? a. What is the average annual return? The average return is%. (Round to two decimal places.) 4 3.7%
- The last four years of returns for a stock are as follows: 2 28.5% Year Return 1 -3.7% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? a. What is the average annual return? The average return is %. (Round to two decimal places.) CONS W P SOSIAN 3 11.7% P 20 4 4.3% ...A stock is expected to earn 10.0% over the next year with a 40% probability and 3.0% otherwise. What is the standard deviation of returns based on this scenario analysis? Answer in percent, rounded to one decimal place.A stock price is $20. It has an expected return of 12% and a volatility of 35%. What is the standard deviation of the change in the price in one day. (For this question assume that there are 365 trading days in the year.) Question 15Answer a. $0.23 b. $0.10 c. $0.26 d. $0.37
- The last four years of returns for a stock are as follows: Year 1 2 3 4 Return 4.3% 28.1% 12.3% 3.9% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns?If the annual volatility of a stock's annual returns is 35% per year and if the stock has a price of $77, the monthly volatility of that same stock's monthly price changes should approximately be: a. $224.58 b. $7.78 c. $26.95 d. $32.24A stock has the following returns over a 3 year period: 25%, -4%, 8%. What is this stock's geometric average return over this 3 year period?
- Consider a stock currently trading at $10, with expected annual return of 15% and annual volatility of 0.2. Under our standard assumption about the evolution of stock prices, what is the probability that the price of the stock in one years time will be below $9?A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate g throughout time. The stock’s required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of g?You have a stock trading at $100. The stock follows a lognormal distribution: with drift of 20% and volatilty of 30%. The risk free rate is 2%. What is the risk-neutral probability for a 3- month 100 put to expire in the money? Find N(-d2). Compare the results.
