Let the standard deviation of returns for a share per month be ##\sigma_\text{monthly}##.
What is the formula for the standard deviation of the share's returns per year ##(\sigma_\text{yearly})##?
Assume that returns are independently and identically distributed (iid) so they have zero auto correlation, meaning that if the return was higher than average today, it does not indicate that the return tomorrow will be higher or lower than average.
Question 381 Merton model of corporate debt, option, real option
In the Merton model of corporate debt, buying a levered company's debt is equivalent to buying risk free government bonds and:
Question 556 portfolio risk, portfolio return, standard deviation
An investor wants to make a portfolio of two stocks A and B with a target expected portfolio return of 12% pa.
- Stock A has an expected return of 10% pa and a standard deviation of 20% pa.
- Stock B has an expected return of 15% pa and a standard deviation of 30% pa.
The correlation coefficient between stock A and B's expected returns is 70%.
What will be the annual standard deviation of the portfolio with this 12% pa target return?
A $100 stock has a continuously compounded expected total return of 10% pa. Its dividend yield is 2% pa with continuous compounding. What do you expect its price to be in one year?
An effective monthly return of 1% ##(r_\text{eff monthly})## is equivalent to an effective annual return ##(r_\text{eff annual})## of:
Question 803 capital raising, rights issue, initial public offering, on market repurchase, no explanation
Which one of the following capital raisings or payouts involve the sale of shares to existing shareholders only?
Below is the Australian central bank’s cash rate.
From 2011 to 2017 the Australian central bank has implemented:
Which one of the following businesses is likely to be a public company in Australia, judging by its name?