Question: Problem 12-9 Calculating Returns and Variability [LO1] You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 17 percent, -4 percent,

Problem 12-9 Calculating Returns and Variability [LO1]

You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 17 percent, -4 percent, 20 percent, 12 percent, and 10 percent.

a.What was the arithmetic average return on the company's stock over this five-year period?(Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)

b-1.What was the variance of the company's returns over this period?(Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.)b-2.What was the standard deviation of the company's returns over this period?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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!