The rates of return on Cherry Jalopies, Inc., stock over the last five years were 17 percent, 11 percent, -1 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 22 percent, –1 percent, 5 percent, and 12 percent. Calculate the variances and the standard deviations for Cherry and Straw. (Do not round intermediate calculations. Enter your variance as a decimal rounded to 5 decimal places. Enter your standard deviation as a percent rounded to 2 decimal places.) Cherry Straw Variance Standard deviation % %

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter6: Risk And Return
Section: Chapter Questions
Problem 4P: An analyst gathered daily stock returns for Feburary 1 through March 31, calculated the Fama-French...
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The rates of return on Cherry Jalopies, Inc., stock over the last five years were 17 percent, 11 percent, -1
percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company's stock
were 16 percent, 22 percent, –1 percent, 5 percent, and 12 percent.
Calculate the variances and the standard deviations for Cherry and Straw. (Do not round intermediate
calculations. Enter your variance as a decimal rounded to 5 decimal places. Enter your standard deviation
as a percent rounded to 2 decimal places.)
Cherry
Straw
Variance
Standard deviation
%
%
Transcribed Image Text:The rates of return on Cherry Jalopies, Inc., stock over the last five years were 17 percent, 11 percent, -1 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 22 percent, –1 percent, 5 percent, and 12 percent. Calculate the variances and the standard deviations for Cherry and Straw. (Do not round intermediate calculations. Enter your variance as a decimal rounded to 5 decimal places. Enter your standard deviation as a percent rounded to 2 decimal places.) Cherry Straw Variance Standard deviation % %
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