You've observed the following returns on Pine Computer's stock over the past five years: 10 percent, -10 percent, 17 percent, 22 percent, and 10 percent. a. What was the arithmetic average return on the company's stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b-1. What was the variance of the company's returns over this period? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 16161.) b-2. What was the standard deviation of the company's returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Average return b-1. Variance b-2. Standard deviation % %
You've observed the following returns on Pine Computer's stock over the past five years: 10 percent, -10 percent, 17 percent, 22 percent, and 10 percent. a. What was the arithmetic average return on the company's stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b-1. What was the variance of the company's returns over this period? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 16161.) b-2. What was the standard deviation of the company's returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Average return b-1. Variance b-2. Standard deviation % %
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
Related questions
Question
![You've observed the following returns on Pine Computer's stock over the past five years:
10 percent, -10 percent, 17 percent, 22 percent, and 10 percent.
a. What was the arithmetic average return on the company's stock over this five-year
period? (Do not round intermediate calculations and enter your answer as a
percent rounded to 1 decimal place, e.g., 32.1.)
b-1. What was the variance of the company's returns over this period? (Do not round
intermediate calculations and round your answer to 5 decimal places, e.g.,
16161.)
b-2. What was the standard deviation of the company's returns over this period? (Do not
round intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
a. Average return
b-1. Variance
b-2. Standard deviation
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5f07a2d3-1a4c-44eb-ab08-cc9c573acde5%2F19f69e0f-f314-4e13-9803-bf6a2c4daaed%2Fjp3puuk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You've observed the following returns on Pine Computer's stock over the past five years:
10 percent, -10 percent, 17 percent, 22 percent, and 10 percent.
a. What was the arithmetic average return on the company's stock over this five-year
period? (Do not round intermediate calculations and enter your answer as a
percent rounded to 1 decimal place, e.g., 32.1.)
b-1. What was the variance of the company's returns over this period? (Do not round
intermediate calculations and round your answer to 5 decimal places, e.g.,
16161.)
b-2. What was the standard deviation of the company's returns over this period? (Do not
round intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
a. Average return
b-1. Variance
b-2. Standard deviation
%
%
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