Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 19 percent,

Question:

You’ve observed the following returns on SkyNet Data Corporation’s stock over the past five years: 19 percent, 24 percent, 11 percent, −9 percent, and 13 percent.

a. What was the arithmetic average return on the company’s stock over this 5-year period?

b. What was the variance of the company’s returns over this period? The standard deviation?

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Corporate Finance

ISBN: 978-1259918940

12th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Question Posted: Dec 06, 2019 12:31 PM

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Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 19 percent,

Question:

Step by Step Answer:

a To find the average return we sum all the returns and divide by the number of r...View the full answer

Corporate Finance

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