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: –29.7 percent, 16.8 percent, 36.6 percent, 3.9 percent, and 22.9 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).) 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).) (b) What was the standard deviation of the returns over this period?

Explanation / Answer

Standard Deviation = 11.2063

Year Return Deviation = Actual return - Average return Deviation ^2 1 29.7 7.72 59.5984 2 16.8 -5.18 26.8324 3 36.6 14.62 213.7444 4 3.9 -18.08 326.8864 5 22.9 0.92 0.8464 109.9 627.908 Average Return 21.98 Variance 125.5816

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