1. Find the mean return and standard deviation of return for the following stock using 5 years of trailing returns.
Year 1: 15%
Year 2: 20%
Year 3: 16%
Year 4: 18%
Year 5: 10%
2. Dilution refers to the loss of shareholder value, and may be represented by all of the following except dilution of
B. market value.
C. the firm’s current ratio.
D. book value per share.
3. Which of the following is not one of the six costs of issuing securities?
A. Rights offering
C. Green Shoe option
B. Abnormal returns