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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%

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