Observed the following Corporation stock over the pa e years: -28.5 percent, 16 percent, 35 percent, 3.5 percent, and 22.5 percent. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) What was the standard deviation of the 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.) Arithmetic average return Variance Standard deviation % %

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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You've observed the following returns on Yamauchi Corporation's stock over the past
five years: -28.5 percent, 16 percent, 35 percent, 3.5 percent, and 22.5 percent.
a. What was the arithmetic average return on the stock over this five-year period? (Do
not round intermediate calculations and enter your answer as a percent rounded
to 2 decimal places, e.g., 32.16.)
b. What was the variance of the returns over this period? (Do not round intermediate
calculations and round your answer to 6 decimal places, e.g., 32.161616.)
c. What was the standard deviation of the 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.)
a. Arithmetic average return
%
b. Variance
Standard deviation
%
C.
Transcribed Image Text:You've observed the following returns on Yamauchi Corporation's stock over the past five years: -28.5 percent, 16 percent, 35 percent, 3.5 percent, and 22.5 percent. a. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) c. What was the standard deviation of the 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.) a. Arithmetic average return % b. Variance Standard deviation % C.
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