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169. Bianco Corporation has experienced returns of -5%, 20%, 10% and -8% returns over the past four years. Given this information, calculate the company's standard deviation. A. 13.12% B. 10.08% C. 8.02% D. 6.09% E. 5.89%
167. Last year, you purchased a stock at a price of $53.60 a share. Over the course of the year, you received $1.50 in dividends and inflation averaged 2.9%. Today, you sold your shares for $55.90 a share. What is your approximate real rate of return on this investment? A. 4.2% B. 7.1% C. 7.9% D. 8.6% E. 10.0%
Answer 169
Excel formula function for standard deviation Calculation = STDEV(return 1, return 2, Return 3, Return 4)
==STDEV(-5%, 20%, 10%, -8%)
=0.1312440475 Or 13.12%
So standard deviation is 13.12%
Answer 167
Nominal rate of return =(selling price per share - buying price per share + Dividend Received)/buying Price per share
=(55.90-53.60+1.5)/53.60
=0.07089552239
Inflation rate is 2.9% or 0.029
Approximate real rate of return = nominal rate of return - inflationi rate
=0.07089552239-0.029
=0.04189552239 or 4.2%
So approximate real rate of Return is 4.2%
