You?ve observed the following returns on Doyscher Corporation?s stock over the p

Question

You?ve observed the following returns on Doyscher Corporation?s stock over the past five years: -25.8 percent, 14.2 percent, 31.4 percent, 2.6 percent. and 21.6 percent. Requirement 1: What was the arithmetic average return on the stock over this live-year period? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Requirement 2: (a) What was the variance of the returns over this period? (Do not round intermediate calculations. Round your answer to 6 decimal places (e.g., 32.161616).) Variance (b) What was the standard deviation of the returns over this period? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Standard deviation %

Explanation / Answer

Arithmatic Average=(-25.8+14.2+31.4+2.6+21.6)/5=8.8

Variance =[(-25.8-8.8)^2+(14.2-8.8)^2+(31.4-8.8)^2+(2.6-8.8)^2+(21.6-8.8)^2]/[5-1]=1939.36/4=484.84

Standard Deviation=Square Root(484.84)=22.01

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