Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You've observed the following retums on Pine Computer's stock over the past five years: 14 percent, -7 percent, 17 percent, 15 percent, and 10 percent.

image text in transcribed

image text in transcribed

You've observed the following retums on Pine Computer's stock over the past five years: 14 percent, -7 percent, 17 percent, 15 percent, and 10 percent. What was the arithmetic average return on the company's stock over this five-year perlod? (Do not round Intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 321.) b-1. What was the varlance of the company's returns over this period? (Do not round Intermedlate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What was the standard deviation of the company's returns over this perlod? (Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 declmal places, e.g., 3216.) 2. Average retum b-1. Varance b-2. Standard deviation % Year 1 Returns X Y 20% 15% 35 9 -16 -21 10 5 Using the returns shown above, calculate the arithmetic average returns, the varlances, and the standard deviations for X and Y. (Do not round Intermedlate calculations. Enter your average return and standard devlation answers as a percent rounded to 2 declmal places, e.g., 32.16, and round the varlance answers to 5 decimal places, e.g., 16161.) Average returns % Variances Standard deviations 96 %

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

Step: 3

blur-text-image

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

Emotions In Finance Booms Busts And Uncertainty

Authors: Jocelyn Pixley

2nd Edition

1107633370, 978-1107633377

More Books

Students also viewed these Finance questions