You've observed the following returns on Yamauchi Corporation's stock over the past five years: -27.6 percent, 15.4 percent, 33.8 percent, 3.2 percent, and 22.2 percent. a. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) c. What was the standard deviation of the 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.) Answer is complete but not entirely correct. a. b. C. Arithmetic average return Variance Standard deviation 9.20% 548.560000 23.42 %

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter13: Direct Foreign Investment
Section: Chapter Questions
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You've observed the following returns on Yamauchi Corporation's stock over the past
five years: -27.6 percent, 15.4 percent, 33.8 percent, 3.2 percent, and 22.2 percent.
a. What was the arithmetic average return on the stock over this five-year period? (Do
not round intermediate calculations and enter your answer as a percent rounded
to 2 decimal places, e.g., 32.16.)
b. What was the variance of the returns over this period? (Do not round intermediate
calculations and round your answer to 6 decimal places, e.g., 32.161616.)
c. What was the standard deviation of the 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.)
Answer is complete but not entirely correct.
a.
b.
C.
Arithmetic average
return
Variance
Standard deviation
9.20%
548.560000
23.42 %
Transcribed Image Text:You've observed the following returns on Yamauchi Corporation's stock over the past five years: -27.6 percent, 15.4 percent, 33.8 percent, 3.2 percent, and 22.2 percent. a. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) c. What was the standard deviation of the 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.) Answer is complete but not entirely correct. a. b. C. Arithmetic average return Variance Standard deviation 9.20% 548.560000 23.42 %
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