The last four years of returns for a stock are as follows: Year 1 2 3...

Question

Question

The last four years of returns for a stock are as follows:

Year	1	2	3	4
Return	−4.4%	27.6%	12.4%	3.7%

a. What is the variance of the stock's returns?

b. What is the standard deviation of the stock's returns?

business finance

Answer 1

Answer #1

V 1Year Return -4.40% 2 1 27.60% 3 2 12.40% 4 3 3.70% 5 4 6 Variance= 0.018748 7 Standard deviation= 0.136924 N

U V 1 Year Return 2 1 -0.044 3 2 4 3 5 4 0.276 0.124 0.037 6 Variance= VAR.S(V2:V5) 7 Standard deviation= =STDEV.S(V2:V5)

Part a:

Variance of the stock's returns=0.018748

Part b:

Standard deviation of the stock's returns=0.136924

Answer 2

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