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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6. The last four years of returns for a stock are as follows: Year Return 2 28.5% 1 - 4.2% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? a. What is the average annual return? The average return is b. What is the variance of the stock's returns? The variance of the returns is 3 12.3% The standard deviation is %. (Round to two decimal places.) 3.6% c. What is the standard deviation of the stock's returns? (Round to five decimal places.) %. (Round to two decimal places.)
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
Consider the following table for a period of six years: Year 123456 Large- Company Stocks - 16.09% -26.89 37.51 24.21 7.72 6.85 Returns U.S. Treasury Bills 7.57% 8.13 6.15 6.47 5.59 8.06
9. Calculating Returns and Variability You've observed the following returns on Yamauchi Corporation's stock over the past five years: –10 percent, 24 percent, 21 percent, 11 percent, and 8 percent. LO 1 What was the arithmetic average return on the stock over this five-year period? a. b. What was the variance of the returns over this period? The standard deviation? For Problem 0 cupnose the
Over the past five years, a stock returned -2.73 percent, 14.66 percent, 15.19 percent, 3.43 percent, and 5.49 percent, respectively. What is the variance (as a decimal fraction) of these returns? Carry intermediate calculations to six decimals. Answer to four decimals. Your answer should look something like 0.0123, or 0.0024.
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Consider the following annual returns of Molson Coors and International Paper: Molson International Раper 6.4% Coors Year 1 25.8% Year 2 -10.3 -19.4 Year 3 46.0 -0.4 Year 4 -10.7 28.5 Year 5 18.1 -13.0 Compute each stock's average return, standard deviation, and coefficient of variation. (Round your answers to 2 decimal places.) International Раper Molson Coors Average return % Standard deviation % % Coefficient of variation Which stock appears better? O International Paper O Molson Coors
B O A stock had returns of 14.83 percent, 19.47 percent, -17.19 percent, 12.59 percent, and 27.07 percent for the past five years. What is t variance of the returns? O Multiple Choice 16891 .02853 .03804 .00378 .03424

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