Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 8 percent, 13

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You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: –8 percent, 13 percent, 5 percent, 16 percent, and 32 percent.

a. What was the average return on Crash-n-Burn’s stock over this five-year period?

b. What was the variance of Crash-n-Burn’s returns over this period? The standard deviation?

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: Oct 03, 2023 12:34 PM

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Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 8 percent, 13

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a Average return To calculate the average return we simply add up the returns for each year and divi...View the full answer

Fundamentals Of Corporate Finance

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