You've observed the following returns on Mary Ann Data Corporation's stock over the past five years: 38.50 percent, 20.50 percent, 23.50 percent, -25.50 percent, and 12.50 percent. a. What was the arithmetic average return on Mary Ann's stock over this five-year period? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Arithmetic average return b-1. What was the variance of Mary Ann's returns over this period? (Do not round intermediate calculations. Round the final answer to 6 decimal places.) Variance b-2. What was the standard deviation? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Standard deviation %

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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**Stock Return Analysis Exercise**

In this exercise, you will analyze the stock returns of Mary Ann Data Corporation over the past five years, which are as follows: 38.50%, 20.50%, 23.50%, -25.50%, and 12.50%.

### Questions:

#### a. Arithmetic Average Return
- Calculate the arithmetic average return of Mary Ann's stock over the five-year period. 
- **Instruction**: Do not round intermediate calculations. Round the final answer to 2 decimal places.
- **Answer Box**: Arithmetic average return _____ %

#### b-1. Variance
- Determine the variance of Mary Ann's returns over this period.
- **Instruction**: Do not round intermediate calculations. Round the final answer to 6 decimal places.
- **Answer Box**: Variance _____

#### b-2. Standard Deviation
- Calculate the standard deviation.
- **Instruction**: Do not round intermediate calculations. Round the final answer to 2 decimal places.
- **Answer Box**: Standard deviation _____ %

In this analysis, you will apply statistical methods to better understand the historical performance of the stock, enabling a deeper understanding of return variability and risk.
Transcribed Image Text:**Stock Return Analysis Exercise** In this exercise, you will analyze the stock returns of Mary Ann Data Corporation over the past five years, which are as follows: 38.50%, 20.50%, 23.50%, -25.50%, and 12.50%. ### Questions: #### a. Arithmetic Average Return - Calculate the arithmetic average return of Mary Ann's stock over the five-year period. - **Instruction**: Do not round intermediate calculations. Round the final answer to 2 decimal places. - **Answer Box**: Arithmetic average return _____ % #### b-1. Variance - Determine the variance of Mary Ann's returns over this period. - **Instruction**: Do not round intermediate calculations. Round the final answer to 6 decimal places. - **Answer Box**: Variance _____ #### b-2. Standard Deviation - Calculate the standard deviation. - **Instruction**: Do not round intermediate calculations. Round the final answer to 2 decimal places. - **Answer Box**: Standard deviation _____ % In this analysis, you will apply statistical methods to better understand the historical performance of the stock, enabling a deeper understanding of return variability and risk.
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