The last four years of returns for a stock are as follows:

Year	1	2	3	4
Return	−4.5%	27.6%	12.1%	4.3%

a. What is the average annual return?

b. What is the variance of the stock's returns?

c. What is the standard deviation of the stock's returns?

Answer rating: 100% (QA)

To calculate the average annual return we need to sum up the returns for the four years and di... View the full answer