Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 4 percent, -8 percent, 30 percent, 14 percent, and 12
1. Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 4 percent, -8 percent, 30 percent, 14 percent, and 12 percent. |
Requirement 1: |
What was the arithmetic average return on Crash-n-Burns stock over this five year period? |
(Click to select) 11.34% 8.42% 13.00% 12.38% 10.40% |
Requirement 2: | |
(a) | What was the variance of Crash-n-Burns returns over this period? (Do not round intermediate calculations.) |
(Click to select) 0.01558 0.02032 0.01578 0.01773 0.01948 |
(b) | What was the standard deviation of Crash-n-Burns returns over this period? (Do not round intermediate calculations.) |
(Click to select) 16.61% 13.96% 11.31% 12.48% 14.26% |
2.
A stock had returns of 16 percent, 17 percent, 12 percent, 11 percent, 20 percent, and 14 percent over the last six years. |
Required: | |
(a) | What is the arithmetic return for the stock? |
(Click to select) 15.10% 15.20% 15.75% 18.00% 15.00% |
(b) | What is the geometric return for the stock? |
(Click to select) 15.06% 14.76% 15.24% 14.96% 18.21% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started