4. value: 10,00 points You did not receive full credit for this question in a pr

Question

4. value: 10,00 points You did not receive full credit for this question in a previous attempt You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 10 percent,-10 percent, 17 percent, 22 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 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 118.56 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 10.89 %

Explanation / Answer

Average return=Total of returns/Total time period

=(10-10+17+22+10)/5=9.8%

SD=[Total of (Return-mean)^2/(time period-1)]^(1/2)

=12.17%(Approx)

Variance=SD^2

=0.01482

Return (Return-mean)^2 10 (10-9.8)^2=0.04 -10 (-10-9.8)^2=392.04 17 (17-9.8)^2=51.84 22 (22-9.8)^2=148.84 10 (10-9.8)^2=0.04 Total=592.8%

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