Over the Past Four Years, the Common Stock of JL

question 63

Multiple Choice

Over the past four years, the common stock of JL Steel Co. produced annual returns of 7.2, 4.8, 10.2, and 12.6 percent, respectively. 3.2, 3.4, 4.2, and 4.5 percent, respectively. What is the standard deviation of the risk premium on JL Steel Co. stock for this time period?

• A) 2.23 percent
• B) 2.86 percent
• C) 3.29 percent
• D) 4.46 percent
• E) 4.61 percent

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Definitions:

Exclusion of Gain

A provision that allows taxpayers to exclude some or all of the gains from the sale of certain assets from their taxable income.

Two-year Period

A specific timeframe often referenced in tax or legal contexts, which might relate to limitations, qualifications, or assessments.

Involuntary Conversion

A forced exchange of property or assets, often due to theft or natural disaster, that may have tax implications.

Two Years

A time period equal to 24 months or 730 days, often cited in various contexts such as investment holding periods for tax purposes.