You’ve observed the following returns on Crash-n-Burn Computer’s stock over the

Question

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 14 percent, –7 percent, 17 percent, 15 percent, and 10 percent. 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.) Average return 9.8 % b-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.) Variance 75.8 b-2 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.) Standard deviation 8.71 %

I think the second answer is a little off.. which makes the 3rd answer a little off

Explanation / Answer

Ans.:)

Average Returns = (14%+7%+17%+15%+10%)/5 = 12.60%

Standard Deviation = square root of 65.20% = 8.07465%

Variance = 65.2

Years Returns Avg Returns (Returns-avg Returns) 1 2 3 4 4*4 1 14% 12.60% 1.400% 1.96% 2 7% 12.60% -5.600% 31.36% 3 17% 12.60% 4.400% 19.36% 4 15% 12.60% 2.400% 5.76% 5 10% 12.60% -2.600% 6.76% TOTAL 63% 65.20%

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

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