Question

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You've observed the following returns on Yamauchi Corporation's stock over the past five years: -24.3 percent, 13.2 percent, 29.4 percent, 2.1 percent, and 21.1 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.) Arithmetic average return b. Variance c. Standard deviation

Answer 1

YEAR	RETURN	(X -Average Return of X)^2
1	-24.3	1062.760000
2	13.2	24.010000
3	29.4	445.210000
4	2.1	38.440000
5	21.1	163.840000
Total	41.5	1734.260000
Arithmetic Average Return =	Total Return / NO of years
	41.5 / 5
	8.3 %
Variance =	sum of (X -Average Return of X)^2 / no of years
	1734.26 / 5
	346.852
Standard Deviation =	Square root of Variance
	Square root of 346.852
	18.62 %