Over the Past Four Years, the Common Stock of Jess

question 85

Multiple Choice

Over the past four years, the common stock of Jess Electronics Co. produced annual returns of 7.2, 5.8, 11.2, and 13.6 percent, respectively. Treasury bills produced returns of 3.4, 3.3, 4.1, and 4.0 percent, respectively over the same period. What is the standard deviation of the risk premium on Jess Electronics Co. stock for this time period?

• A)2.23%
• B)2.86%
• C)3.22%
• D)4.46%
• E)4.61%

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Definitions:

Aggregate

A whole formed by combining several separate elements; often used in the context of data or materials.

Efficiency Metrics

Quantitative tools used to assess the productivity and performance of a system or process, focusing on maximizing outputs with minimal inputs.

Total Cost

The complete amount of money required to produce goods or services, including fixed and variable costs.

Ownership

The state or fact of exclusive rights and control over property, which can be an object, land/real estate, intellectual property, or some other kind of property.