# Question: Consider the return on equity expressed like an interest rate

Consider the return on equity, expressed like an interest rate in percentage points per year, for a sample of companies:

5.5, 10.6, 19.0, 24.5, 6.6, 26.8, 6.2, –2.4, –28.3, 2.3

a. Find the average and standard deviation of the return on equity.

b. Interpret the standard deviation.

c. How many standard deviations below average is the worst performance?

d. Draw a histogram and indicate the average, the standard deviation, and the deviation of the worst performance.

5.5, 10.6, 19.0, 24.5, 6.6, 26.8, 6.2, –2.4, –28.3, 2.3

a. Find the average and standard deviation of the return on equity.

b. Interpret the standard deviation.

c. How many standard deviations below average is the worst performance?

d. Draw a histogram and indicate the average, the standard deviation, and the deviation of the worst performance.

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