Hi :) i need help with this. Thank you!! the choices that are there for the hist

Question

Hi :) i need help with this. Thank you!!

the choices that are there for the historical returns are

a sample, the universe, the population.

Standard deviation choices are

3.96,5.14, 4.59, 6.94.

Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Five years of realized returns for Blue Llama Mining (BLM) Inc. are given in the following table. Remember: 1. While BLM was started 40 years ago, its common stock has been publicly traded for the past 25 years 2. The returns on its equity are calculated as arithmetic returns. 2011 2012 2013 2014 2015 Stock return 11.25% 7.65% 13.50% 18.90% 5.85% Given the preceding data, the average realized return on BLM's stock is 11.43% The preceding data series represents standard deviation of BLM's historical returns is of BLM's historical returns. Based on this conclusion, the

Explanation / Answer

the preceding data series represents sample of BLM's historical returns. Based on this conclusion, the standard deviation of BLM's historical returns is 4.59

Yr Stock Return A- Mean (A-Mean)^2 (A) (B) C = B^2 2011 11.25 -0.18 0.0324 2012 7.65 -3.78 14.2884 2013 13.5 2.07 4.2849 2014 18.9 7.47 55.8009 2015 5.85 -5.58 31.1364 57.15 105.543 Mean 11.43 Standard Deviation = square root of [(A-Mean)^2/n-1] square root of [105.543/4] 5.14 Coefficient of Variation = SD/Mean = 5.14/11.43 0.45

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