Finance Exam
ujlefeunek
financial_assesmentexcel.xlsxSheet1
| Google stock | PRICE | Amount of gain | Rate of return | |
| Dec,5,2007 | $698.51 | ($396.52) | -56.77% | |
| Dec,5,2008 | $301.99 | |||
| Plaxos stocks | Total return | % rate of return | ||
| initial share price | 9.45 | 3.64 | 38.52% | |
| ending share price | 11.66 | |||
| divdends | 1.43 | |||
| Time | Caswell | Average rate of return | geometric mean | |
| 1 | $12 | 0.00 | 1 | |
| 2 | 9 | -0.25 | 0.75 | |
| 3 | 7 | -0.22 | 0.78 | |
| 4 | 6 | -0.14 | 0.86 | |
| 5 | 8 | 0.33 | 0.67 | |
| Arithmetic average rate of return | -5.63% | 4.06 | ||
| Geometric average rate of return | 0.3234 | |||
| SYNTAX | ||||
| Common Stock A | ||||
| Probability | Return | X-E[X] | (X-E[X])^2 | |
| 0.2 | 10% | -5.8% | 0.003364 | |
| 0.6 | 16% | 0.2% | 0.000004 | |
| 0.2 | 21% | 5.2% | 0.002704 | |
| Expected returns | 15.80% | |||
| variance | 0.001216 | |||
| standard deviation | 0.0348711915 | |||
| Common Stock B | ||||
| Probability | Return | X-E[X] | (X-E[X])^2 | |
| 0.1 | -7% | -15.50% | 2.40% | |
| 0.4 | 5% | -3.50% | 0.12% | |
| 0.4 | 13% | 4.50% | 0.20% | |
| 0.1 | 20% | 11.50% | 1.32% | |
| Expected returns | 8.50% | |||
| variance | 0.005025 | |||
| standard deviation | 0.0708872344 | |||
