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: –25.2 percent, 13.8 percent, 30.6 percent, 2.4 percent, and 21.4 percent.

Requirement 1: What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Arithmetic average return %

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

arthematic average return = (25.2 + 13.8 + 30.6 + 2.4 + 21.4)/5 = 18.68%

variance = ((25.2-18.68)^2 + (13.8-18.68)^2 + (30.6-18.68)^2 + (2.4-18.68)^2 + (21.4-18.68)^2)/5

= 0.009649

standard deviation = sqrt(variance) = 9.82%

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