The rates of return on Cherry Jalopies, Inc., stock over the last five years were 23 percent, 11 percent, -5 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 24 percent, -6 percent, 2 percent, and 16 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.) Variance Standard deviation Answer is complete but not entirely correct. Cherry 83.72000x 9.15% Straw 117.80000 x 10.85 %

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...
Question
The rates of return on Cherry Jalopies, Inc., stock over the last five years were 23 percent, 11 percent, -5 percent, 7 percent, and 10
percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 24 percent, -6 percent, 2
percent, and 16 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.)
X Answer is complete but not entirely correct.
Cherry
83.72000 X
Straw
117.80000 X
Variance
Standard deviation
9.15 %
10.85 %
Transcribed Image Text:The rates of return on Cherry Jalopies, Inc., stock over the last five years were 23 percent, 11 percent, -5 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 24 percent, -6 percent, 2 percent, and 16 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.) X Answer is complete but not entirely correct. Cherry 83.72000 X Straw 117.80000 X Variance Standard deviation 9.15 % 10.85 %
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