Explore BrainMass

# Standard deviation, current stock price, expected ROR

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

15. Returns for the Shields Company over the last 3 years are shown below. What's the standard deviation of Shields' returns? (Hint: This is a sample, not a complete population, so the sample standard deviation formula should be used.)

Year Return
2006 21.50%
2005 -12.50%
2004 24.20%

16. The Zumwalt Company is expected to pay a dividend of \$2.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current stock price?

17. If D1 = \$1.25, g (which is constant) = 5.5%, and P0 = \$44, what is the stock's expected total return for the coming year?

#### Solution Preview

15. Returns for the Shields Company over the last 3 years are shown below. What's the standard deviation of Shields' returns? (Hint: This is a sample, not a complete population, so the sample standard deviation formula should be used.)

Year Return
2006 21.50%
...

#### Solution Summary

This provides the steps to compute the standard deviation, current stock price, expected ROR: Shields, Zumwalt

\$2.49