Downtown Industries Common Stock Had Returns of 7

question 58

Multiple Choice

Downtown Industries common stock had returns of 7.2,11.5,10.5,and 7.5 percent,respectively,over the past four years.What is the standard deviation of these returns?

• A) 2.15 percent
• B) 2.38 percent
• C) 2.41 percent
• D) 2.59 percent
• E) 2.82 percent

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Definitions:

Capital Appreciation

An increase in the value of an asset or investment over time, not including the earnings from dividends or interest.

Limited Liability

A legal structure that limits the financial liability of investors or owners to the amount they have invested in a company.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them rights to dividends and a say in company matters through voting.