1. Calculate an asset’s standard deviation based on the following observed sample of returns: -5%, 3%, 8%, 10%, 15%.
Show how you got the answer.
a) 7.15%
b) 7.60%
c) 8.38%
d) 8.47%
e) 9.22%
2. In evaluating a purchase offer, a primary consideration for the target shareholders should be the tax implications and transaction costs associated with the offer.
True or false