You’ve observed the following returns on Crash-n-Burn Computer’s stock over the
ID: 2711460 • Letter: Y
Question
You’ve observed the following returns on Crash-n-Burn Computer’s 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-Burn’s stock over this five-year period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)
What was the variance of Crash-n-Burn’s returns over this period? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.)
What was the standard deviation of Crash-n-Burn’s returns over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
a.What was the arithmetic average return on Crash-n-Burn’s stock over this five-year period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)
Explanation / Answer
where variance = ( ( x - mean)^2)/(N-1)
standard deviation = square root of variance
period Return 1 15 2 -6 3 18 4 14 5 10 Average return = 10.2 Variance = 90.2 Standard deviation= 9.497368Related Questions
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