A Stock Has Returns for Five Years of 23 Percent

question 63

Multiple Choice

A stock has returns for five years of 23 percent, -17 percent, 8 percent, 22 percent, and 3 percent. The stock has an average return of ______ percent and a standard deviation of _____ percent.

• A) 7.80; 13.54
• B) 7.80; 14.63
• C) 7.80; 16.36
• D) 14.60; 14.63
• E) 14.60; 16.36

Comprehend the concept and applications of options (call and put) in financial markets.

Grasp the basics of interest rates, yield calculations, and the impact of inflation on investments.

Understand the role and function of money market instruments and their significance in financial markets.

Recognize the importance of tax implications on investment decisions and calculate taxable equivalent yields.

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Definitions:

Controllable Variance

The difference between actual and expected outcomes that can be directly managed or influenced by a responsible party.