Youve observed the following returns on Crash-n-Burn Computers stock over the pa
ID: 2659126 • Letter: Y
Question
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 10 percent, 11 percent, 18 percent, 19 percent, and 10 percent.
What was the arithmetic average return on Crash-n-Burns stock over this five-year period? (Round your answer to 1 decimal place. (e.g., 32.1))
What was the variance of Crash-n-Burns returns over this period? (Round your answer to 5 decimal places. (e.g., 32.16161))
What was the standard deviation of Crash-n-Burns returns over this period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 10 percent, 11 percent, 18 percent, 19 percent, and 10 percent.
Explanation / Answer
year
RETURN(X)
X-MEAN
[X-13.6]
(X-MEAN)^2
1
10
-3.6
12.96
2
11
-2.6
6.76
3
18
4.4
19.36
4
19
5.4
29.16
5
10
-3.6
12.96
TOTAL = 68
TOTAL = 81.2
A]ARITHMETIC AVERAGE OR MEAN= 68/5
=13.6%
B]VARIANCE = 81.2/5
16.24% SQUARE
C]S.D = SQUARE ROOT OF S.D
=4.03%
year
RETURN(X)
X-MEAN
[X-13.6]
(X-MEAN)^2
1
10
-3.6
12.96
2
11
-2.6
6.76
3
18
4.4
19.36
4
19
5.4
29.16
5
10
-3.6
12.96
TOTAL = 68
TOTAL = 81.2
A]ARITHMETIC AVERAGE OR MEAN= 68/5
=13.6%
B]VARIANCE = 81.2/5
16.24% SQUARE
C]S.D = SQUARE ROOT OF S.D
=4.03%
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