Youve observed the following returns on Crash-n-Burn Computers stock over the pa
ID: 2645155 • Letter: Y
Question
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 15 percent, 6 percent, 18 percent, 14 percent, and 10 percent.
What was the arithmetic average return on Crash-n-Burns stock over this five-year period? (Round your answer to 1 decimal place. (e.g., 32.1)
What was the variance of Crash-n-Burns returns over this period? (Round your answer to 5 decimal places. (e.g., 32.16161))
What was the standard deviation of Crash-n-Burns returns over this period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
a.What was the arithmetic average return on Crash-n-Burns stock over this five-year period? (Round your answer to 1 decimal place. (e.g., 32.1)
Explanation / Answer
Answer for subpoint a):
Average =(15-6+18+14+10)/5 =10.2%
Answer for subpoint b1:
Variance=average of (square of difference between the value and the mean i.e., average of the range of values, as computed in (X-Y)2 column.)
Variance = (23.04+262.44+60.84+14.44+0.04)/5 =72.16%
Answer for subpoint B2:
Standard deviation = square root (variance)
=Square root(72.16)
= 8.4947 rounded to 8.49%
Year Returns 1 15 2 -6 3 18 4 14 5 10 Average 10.2Related Questions
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