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-yearperiod? (Do not round intermediate calculations and enter your answer as apercent 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 roundintermediate 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 notround intermediate calculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)a. Average returnb-1. Varianceb-2. Standard deviation%%

AVERAGE RETURN Average return in financial management is Computed by Submission of All return &…

Answered: You've observed the following returns…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Am. 132.
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You've observed the following returns on Crash-n-Burn Computer's stock over the past five 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-year period? (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 your answer to 5 decimal places. (e.g., 32.16161)) Variance b-2What was the standard deviation of Crash-n-Burn's returns over this period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Standard deviation %
Manshukh
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.)
The rates of return on Cherry Jalopies, Inc., stock over the last five years were 17 percent, 11 percent, −1 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company’s stock were 16 percent, 22 percent, −1 percent, 5 percent, and 12 percent. Calculate the variances and the standard deviations for Cherry and Straw. (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.)
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
Here are the returns on two stocks. January February March April May June July August Digital Cheese +14 -4 +6 +8 -5 +4 -3 -9 Executive Fruit +8 +2 +5 +12 +3 +6 w At t -4 -3 Required: a-1. Calculate the variance and standard deviation of each stock. a-2. Which stock is riskier if held on its own? 4 b. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks. c. Is the variance more or less than halfway between the variance of the two individual stocks?
Determine the expected standard deviation of a stock that an investment manager has determined that has three possible return outcomes over the next 12 months; -6.45%, 9.85% and 13.05%, for which she has assigned the following probabilities of occurring; 12.5%, 72.5% and 15.0% respectively 5.69% 8.87% 12.74% 0.32%
The rates of return on Cherry Jalopies, Incorporated, stock over the last five years were 18 percent, 11 percent, -2 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 21 percent, -2 percent, 4 percent, and 13 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.
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.
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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