Question: The last four years of returns for a stock are as follows: Year 1 2 3 4 Return -4% +28% +12% +4% a) What is

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


Year1234
Return-4%+28%+12%+4%


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?

Step by Step Solution

3.52 Rating (155 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

1 Average annual return refers to the percentage that measures the money made or lost on a certain i... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!