Calculating Returns and Variability Youve observed the following returns on Crash-n-Burn Computer s stock over the past
Question:
Calculating Returns and Variability You’ve observed the following returns on Crash-n-Burn Computer s stock over the past five years: 2 percent, —8 percent, 24 percent, 19 percent, and 12 percent.
a. What was the arithmetic 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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a To find the average return we sum all the returns and divide by th...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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