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Debby is conducting research about Wolverine Meat Distributors (W.M.D) stock and collect the historical returns in...

Debby is conducting research about Wolverine Meat Distributors (W.M.D) stock and collect the historical returns in the past 5 years as follows: -9.7%, -8.1%, 15%, 7.2%, and 15.4%. Question 1: What is the expected rate of return for W.M.D. stock? (Please round your answer to the fourth decimal, e.g. if your answer is 1.11%, you should input 0.0111.) Question 2: What is the standard deviation for W.M.D. stock? (Please round your answer to the fourth decimal, e.g. if your answer is 1.11%, you should input 0.0111.)

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Answer #1

deviation^2 Month Returns -9.70% -8.10% 15.00% 7.20% 15.40% 0.0396 deviation (returns-average) -14% -12% 11% 3% 11% 0.019 0.0

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