Surat e looking the rolling her shema yun weet or empty Year Annuaan Patum O 1 0% 2 3 7% 4 10% a) Calculate the Arthmetic Average 5 0% b) Calculate the Geometrie Average Saru Aso holds stocks of XYZ

Finance Dec 27, 2020

Surat e looking the rolling her shema yun weet or empty Year Annuaan Patum O 1 0% 2 3 7% 4 10% a) Calculate the Arthmetic Average 5 0% b) Calculate the Geometrie Average Saru Aso holds stocks of XYZ. Corp. and wants to find out the isk and rotun with me towing details Rated olur Proby A 2017 02 10% 0.3 8% D -2% 02 E 02 c) Calculate the expected return of XYZ Corp. for Sara. d) Calculate the Standard Deviation of XYZ Corp.

Expert Solution

A) ARITHMETIC AVERAGE = {8+9+7+(10)+6 }/5 = 4%

B) GEOMETRIC AVERAGE = {1.08*1.09*1.07*0.9*1.06}^1/5 - 1 = 3.74%

STOCK	Probability(P)	Return(X)(%)	P*X	P*(X-x)²
A	0.2	20	4	40.328
B	0.3	10	3	5.292
C	0.1	8	0.8	0.484
D	0.2	-2	-0.4	12.168
E	0.2	-8	-1.6	38.088
			= 5.8%	=96.36(%²)

Return of XYZ CORP (x) = 5.8%
Variance of XYZ CORP = 96.36(%²)

Standard Deviation = 9.82%

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