What is the variance? You?ve observed the following returns on Doyscher Corporat

Question

What is the variance?

You?ve observed the following returns on Doyscher Corporation?s stock over the past five years: ?25.2 percent. 13.8 percent, 30.6 percent, 2.4 percent. and 21.4 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).) Arithmetic average return 8.6 % 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., 32.161 616).) Variance

Explanation / Answer

Average = 8.6

Variance = {(-25.2 - 8.6)^2 + (13.8 -8.6)^2 + (30.6 - 8.6)^2 + (2.4 - 8.6)^2 + (21.4 - 8.6)^2} / 5

= 1855.76 / 5 = 371.152

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

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