The last four years of returns for a stock are as shown here: a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock'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.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 1P: The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market...
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Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Year
Return
1
- 3.6%
2
+ 27.5%
3
+ 12.4%
4
+ 3.8%
I
Transcribed Image Text:Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Return 1 - 3.6% 2 + 27.5% 3 + 12.4% 4 + 3.8% I
The last four years of returns for a stock are as shown here:
a. What is the average annual return?
b. What is the variance of the stock's returns?
c. What is the standard deviation of the stock'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.
Transcribed Image Text:The last four years of returns for a stock are as shown here: a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock'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.
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