For DePaul inc, what is the average return for the four years (we view this as our expected return for next year). Round to no decimal points and use the % symbol. (17%...not 17.4% or 17.32%)


For DePaul inc, what is the average return for the four years (we view this as our<br>expected return for next year). Round to no decimal points and use the % symbol.<br>(17%...not 17.4% or 17.32%)<br>

Extracted text: For DePaul inc, what is the average return for the four years (we view this as our expected return for next year). Round to no decimal points and use the % symbol. (17%...not 17.4% or 17.32%)
Risk return exercise : D2L Assessment #7<br>DePaul, Inc.<br>You are searching for a stock to add to your current stock portfolio. You are interested in DePaul, Inc. You realize<br>that any time you consider a technology stock, it involves elevated risk. The rule you follow is to include only<br>stocks with a coefficient of variation of returns below 1.02. You have obtained the following price information and<br>dividend information:<br>Year<br>Starting Price<br>$40.00<br>Ending price<br>Quarterly Dividend<br>1<br>$42.00<br>$0.50<br>$42.00<br>$47.40<br>$0.75<br>3<br>$47.40<br>$43.40<br>$1.00<br>4<br>$43.40<br>$53.40<br>$1.25<br>a.<br>Calculate the annual rate of return for each year, 1 through 4, for DePaul stock<br>b.<br>Assume that each year's return is equally probable and calculate the average return over this time period.<br>Calculate the standard deviation of returns over the 4 years.<br>Based on b and c determine the coefficient of variation of returns for the security.<br>Does an investment in this stock fall within the parameters of your investment policy?<br>С.<br>d.<br>e.<br>

Extracted text: Risk return exercise : D2L Assessment #7 DePaul, Inc. You are searching for a stock to add to your current stock portfolio. You are interested in DePaul, Inc. You realize that any time you consider a technology stock, it involves elevated risk. The rule you follow is to include only stocks with a coefficient of variation of returns below 1.02. You have obtained the following price information and dividend information: Year Starting Price $40.00 Ending price Quarterly Dividend 1 $42.00 $0.50 $42.00 $47.40 $0.75 3 $47.40 $43.40 $1.00 4 $43.40 $53.40 $1.25 a. Calculate the annual rate of return for each year, 1 through 4, for DePaul stock b. Assume that each year's return is equally probable and calculate the average return over this time period. Calculate the standard deviation of returns over the 4 years. Based on b and c determine the coefficient of variation of returns for the security. Does an investment in this stock fall within the parameters of your investment policy? С. d. e.

Jun 04, 2022
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