You’ve observed the following returns on Crash-n-Burn Computer’s stock over the

Question

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 12 percent, –9 percent, 20 percent, 17 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 _______

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 _________%

Explanation / Answer

Solution:

Allt he three question would be answered in a tabular form :;

Before that the formulas to caculate :

The arithmetic mean of the returns would be calculated by adding all the returns and dividing by the no of returns

Standard deviation = SQRT of Variance

variance is computed using the summation of the returns /n

Sl.No Returns Arithmetic - return Square 1 12 2 4 2 -9 -19 361 3 20 10 100 4 17 7 49 5 10 0 0 Sum 50 Sum 514 Arithmetic mean 10 Variance Sum/n Variance 102.8 Standard deviation SQRT(variance ) S.D 10.14

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

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