You've observed the following returns on Pine Computer's stock over the past five years: -27 percent, 15 percent, 33 percent, 3 percent, and 22 percent. a. What was the arithmetic average return on the stock over this five-year period? Note: 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? Note: Do not round Intermediate calculations and round your answer to 6 decimal places, e.g., .161616. c. What was the standard deviation of the returns over this period? Note: 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 c. Standard deviation 96 96

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You've observed the following returns on Pine Computer's stock over the past five years: -27 percent, 15 percent, 33 percent, 3
percent, and 22 percent.
a. What was the arithmetic average return on the stock over this five-year period?
Note: 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?
Note: Do not round Intermediate calculations and round your answer to 6 decimal places, e.g., .161616.
c. What was the standard deviation of the returns over this period?
Note: 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
c. Standard deviation
%
96
Transcribed Image Text:You've observed the following returns on Pine Computer's stock over the past five years: -27 percent, 15 percent, 33 percent, 3 percent, and 22 percent. a. What was the arithmetic average return on the stock over this five-year period? Note: 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? Note: Do not round Intermediate calculations and round your answer to 6 decimal places, e.g., .161616. c. What was the standard deviation of the returns over this period? Note: 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 c. Standard deviation % 96
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