The last four years of returns for a stock are as follows: Year 1 2 3 4

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

Year 1 2 3 4 Return -4.4% +27.8% +11.6% +3.9%

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?

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Corporate Finance

ISBN: 9781292304151

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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