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You Find a Certain Stock That Had Returns of 4

question 97

Multiple Choice

You find a certain stock that had returns of 4 percent,-5 percent,-15 percent,and 16 percent for four of the last five years.The average return of the stock for the 5-year period was 13 percent.What is the standard deviation of the stock's returns for the five-year period?

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Definitions:

Bankruptcy

A legal proceeding involving a person or business that is unable to repay their outstanding debts, leading to a reorganization or elimination of debt under the laws of bankruptcy.

Key Employees

Employees considered crucial to the operation and success of a business due to their skills, knowledge, or roles.

Optimal Capital Structure

The best mix of debt, equity, and other financing sources that minimizes the company's cost of capital while maximizing its value.

Debt-equity Ratio

Ratio that measures a company's financial leverage by dividing its total liabilities by its shareholder's equity, indicating the balance between debt financing and equity financing.

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