Question

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

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 a percentage format. The variance must be entered in decimal format.

A Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year Return 3 +12.1% 4 + 3.6% -3.9% +28.2% Print Done

Answer 1

deviation 2 deviation Returns (returns-average) S.No -3.9% -14% 1 0.019 28.2% 18% 2 0.033 12.1% 2% 3 0.000 3.6% -6% 4 0.004 10.00% variance 0.0190 average return 13.78% standard deviation Returns Average return 10.00% Variance 0.0190 Standard deviation 13.78%