You've observed the following returns on Crash-n-Burn Computer's stock over the pastfive years: 17 percent, -4 percent, 20 percent, 12 percent, and 10 percent.a. What was the arithmetic average return on Crash-n-Burn's stock over this five-yearperiod? (Round your answer to 1 decimal place. (e.g., 32.1))Average return%b-1What was the variance of Crash-n-Burn's returns over this period? (Round youranswer to 5 decimal places. (e.g., 32.16161))Varianceb-2What was the standard deviation of Crash-n-Burn's returns over this period? (Do notround intermediate calculations and round your final answer to 2 decimal places.(e.g., 32.16))Standarddeviation%

=> Arithmetic average return on Crash-n-Burn's stock over this five-year period = 11.0% =>…

Answered: You've observed the following returns…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Please help me with this problem. I have done it by myself too, but I just want to know that if -8% is the smallest number, do we subtract by -8%, right? You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past 5 years: 2%, -8%, 24%, 19%, and 12%. b. Suppose the average T-bill rate over this period was 4.2%. What was the average risk premium on the stock? I will also attach an image of my work. It's in the top right with a heading of Risk Premium. Thank You
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