Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question Help The last four years of returns for a stock are as shownhere: Year 1: -4.4% Year 2: +28.1% Year 3: +11.9% Year 4:

Question Help

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

Year 1: -4.4%

Year 2: +28.1%

Year 3: +11.9%

Year 4: +4.1%

.

a. What is the average annualreturn?

b. What is the variance of thestock's returns?

c. What is the standard deviation of thestock's returns?

Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format.

a. What is the average annualreturn?

The average return is ? %. (Round to two decimalplaces.)

b. What is the variance of thestock's returns?

The variance of the returns is ? . (Round to five decimalplaces.)

c. What is the standard deviation of thestock's returns?

The standard deviation is ? %. (Round to two decimalplaces.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

7th edition

978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094

More Books

Students also viewed these Accounting questions