Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You've observed the following returns on Pine Computer's stock over the past five years: 1 3 percent, - 1 3 percent, 2 0 percent, 2

You've observed the following returns on Pine Computer's stock over the past five years: 13 percent, -13 percent, 20 percent, 25 percent, and 10 percent.
a. What was the arithmetic average return on the company's stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g.,32.1.)
b-1. What was the variance of the company's returns over this period? (Do not round intermediate 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 period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)
\table[[a. Average return,vdots%
image text in transcribed

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

More Books

Students also viewed these Finance questions