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: –24.6 percent, 13.4 percent, 29.8 percent, 2.2 percent, and 21.2 percent.

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).)

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).)

What was the standard deviation of the returns over this period? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

You’ve observed the following returns on Doyscher Corporation’s stock over the past five years: –24.6 percent, 13.4 percent, 29.8 percent, 2.2 percent, and 21.2 percent.

Explanation / Answer

Year Return D(return-mean) Square D 1 -24.60% -33.00% 10.89% 2 13.40% 5.00% 0.25% 3 29.80% 21.40% 4.58% 4 2.20% -6.20% 0.38% 5 21.20% 12.80% 1.64% total 42.00% 33.60% 17.74% Arithmetic average return= 8.40% (42/5) Variance 3.55% (17.74%/5) S.D= 0.188 (SQRT of 3.55%)

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