You\'ve observed the following returns on Crash-n-Burm Computers stock over the

Question

You've observed the following returns on Crash-n-Burm Computers stock over the past five years. 11 percent,-10 percent, 19 percent, 18 percent, and 10 percent a. What was the arithmetic average return on Crash-n-Bum's stock over this five-year period? (Round your answer to 1 decimal place. (e.g., 32.1)) Average retum b-1 What was the variance of Crash-n-Burn's returns over this period? (Round your answer to 5 decimal places. (e.g., 32.16161) Variance b-2 What was the standard deviation of Crash-n-Burn's returns over this period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Standard deviation

Explanation / Answer

Arithmetic return=Total of returns/Total time period

=(11-10+19+18+10)/5=9.6%

SD=[Total of (return-mean)^2/(Time period-1)]^(1/2)

=11.67%(Approx)

Variance=SD^2

=0.01363

Return (Return-mean)^2 11 (11-9.6)^2=1.96 -10 (-10-9.6)^2=384.16 19 (19-9.6)^2=88.36 18 (18-9.6)^2=70.56 10 (10-9.6)^2=0.16 Total=545.2%

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

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