Problem 10-9 Calculating Returns and Variability [LO 1] You've observed the following returns on Pine Computer's stock over the past five years: -29.7 percent, 16.8 percent, 36.6 percent, 3. percent, and 22.9 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 % %
Problem 10-9 Calculating Returns and Variability [LO 1] You've observed the following returns on Pine Computer's stock over the past five years: -29.7 percent, 16.8 percent, 36.6 percent, 3. percent, and 22.9 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 % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 10-9 Calculating Returns and Variability [LO 1]
You've observed the following returns on Pine Computer's stock over the past five years: -29.7 percent, 16.8 percent, 36.6 percent, 3.
percent, and 22.9 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
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F066733ac-a65f-4818-91d7-638a014b67a7%2F8ebd5b60-2124-4caf-9dfc-afa71a4de0da%2Fp8d8mzc_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 10-9 Calculating Returns and Variability [LO 1]
You've observed the following returns on Pine Computer's stock over the past five years: -29.7 percent, 16.8 percent, 36.6 percent, 3.
percent, and 22.9 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
%
%
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