The rates of return on Cherry Jalopies, Incorporated, stock over the last five years were 25 percent, 11 percent, -7 percent, 6 percent, and 11 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 22 percent, -4 percent, 4 percent, and 14 percent. Calculate the variances and the standard deviations for Cherry and Straw. Note: 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 Cherry % Straw %

Financial Management: Theory & Practice
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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, Incorporated, stock over the last five years were 25
percent, 11 percent, -7 percent, 6 percent, and 11 percent. Over the same period, the
returns on Straw Construction Company's stock were 16 percent, 22 percent, -4 percent, 4
percent, and 14 percent.
Calculate the variances and the standard deviations for Cherry and Straw.
Note: 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
Cherry
%
Straw
%
Transcribed Image Text:The rates of return on Cherry Jalopies, Incorporated, stock over the last five years were 25 percent, 11 percent, -7 percent, 6 percent, and 11 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 22 percent, -4 percent, 4 percent, and 14 percent. Calculate the variances and the standard deviations for Cherry and Straw. Note: 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 Cherry % Straw %
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