Question

The last four years of returns for a stock are as shown here 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? Note Notice that the average return and standard deviation must be entered in percentage format The vanance must be entered in decimal format - X a. What is the average annual return? iData Table % (Round to two decimal places) The average return is (Cick on the ioon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet) 4 Year 2 27 7% +12 5% +3 8% -4 4% Return Print Done Enter your answer in the answer box and then click Check Answer 2 parts remaining Clear All

Answer 1

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STATS - Microsoft Excel (Product Activation Failed) Add-Ins View - 2x Dr General Wrap Text Merge & Center - $ :.: Insert Delete Format File Home Insert Page Layout Formulas Data Review % Cut Calibri -11AA = = = Ea Copy Paste BI U D- DA Format Painter Clipboard Font PP14 Fax 2 PH PL PJ PK % , Number Conditional Format Formatting as Table Styles Cell Styles Σ AutoSum : A Fill Sort & 2 Clear Filter Editing Find & Select Alignment Cells PL PM PN PO PP PQ year returns (rA) (rA - rA bar) -4.4 27.7 12.5 3.8 -14.3 17.8 2.6 -6.1 (rA-rA bar)^2 204.49 316.84 6.76 37.21 average (rA bar) 9.9 565.30 variance = (sum of (x-xbar)^2)/n-1 = VARIANCE = 188.4333 565.30/(4-1) 0.018843 DIVIDE BY 10000 TO CONVERT INTO DECIMALS 11 12. 13 14 standard deviation = sqrt (variance) standard deviation = sqrt (188.4333) STANDARD DEVIATION= 13.73 16 17 18 19 20 21 AVERAGE ANNUAL RETURN VARIANCE STANDARD DEVIATION 10.00% 0.01884 (AS ASKED IN DECIMAL FORMAT, ROUNDED TO 4 DECIMALS) 13.66% PV FV DIVIDEND EMV MEAN STDV assignment DEAR Sheet2 COV TIME SERIEScorr REGRESSION range CAMERA TREND Sheet1 Sheet4 ferences fregMATRIX INTERVAL, NI BOJ 120% Rea - _ + 6 . B * * *0 ENG 06-10-2019