Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 7 percent, -12

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You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 7 percent, -12 percent, 11 percent, 38 percent, and 14 percent. 

(a) What was the arithmetic average return on Crash-n-Burn’s stock over this five-year period?

(b) What was the variance of Crash-n-Burn’s returns over this period? The standard deviation?


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Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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