Q2) A stock had the following annual returns: -13.44%, 27.42% , -28.89%, and 02.

Question

Q2)   A stock had the following annual returns:    

-13.44%, 27.42% , -28.89%, and 02.71%.

           What is the stock's:    a) expected return? (1 point)            What is the stock's:    b) variance? (1 point)            What is the stock's:    c) standard deviation? (1 point) Q2)   A stock had the following annual returns:    

-13.44%, 27.42% , -28.89%, and 02.71%.

           What is the stock's:    a) expected return? (1 point)            What is the stock's:    b) variance? (1 point)            What is the stock's:    c) standard deviation? (1 point)

Explanation / Answer

Solution:

a. Expected return = (-13.44 + 27.42 + (-28.89)+2.71)/4

Expected return = -3.075%

b. Variance = [(-13.44 - (-3.075) + (27.42 - 3.075)^2 + (-28.89 - (-3.075))^2 + (2.71 - 3.075)^2]

Variance = 580.81

c. Standard deviation = sqrt(variance)

Standard deviation = sqrt(580.81)

Standard deviation = 24.10  

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.