Question

End of Year	Stock Price	Returns
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017	$10.90 $5.23 $11.47 $10.40 $10.28 $10.26 $21.27 $23.77 $22.70 $28.62 $45.06	-       -52.02% 119.31% -9.33% -1.15% -0.19% 107.31% 11.75% -4.50% 26.08% 57.44%

The sum of squares equals 2.61954236.

4. The average return is:
   1. 23.15%
   2. $18.18
   3. 25.47%
   4. $20.00
5. The standard deviation of returns is:
   1. 0.291060%
   2. 5.12%
   3. 51.18%
   4. 53.95%
6. The variance of returns is:
   1. 0.053950
   2. 0.291060%
   3. 0.539500
   4. 0.291060

Answer 1

1) Average Return = Sum of all Observation/ Number of Observations

In this case observations are returns in the mentioned years and years are the number of years

Therefore Average return = 254.7/10

= 25.47 (OPTION C)

2) Standard deviation

Where is standard deviation, N is the number of years, X_i is Observations, is Average which we calculated in the first part

= [(X₁-)² + (X2-)² +...................+ (X10-)²]^1/2

=[(-52.02-25.47)² + (119.31-25.47)² +....................+(57.44-25.47)²]^1/2

= 53.95% (OPTION D)

3) Variance = (Standard Deviation)2

=(.5395)²

=0.29106 (OPTION B)