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Problem 10-9 Calculating Returns and Variability Youve observed the following returns on Mary Ann Data Corporations stock o

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Answer #1

a.

Arithmetic Average Return = (0.15 - 0.15 + 0.17 + 0.27 + 0.10)/5

Arithmetic Average Return = 10.80%

b-1.

Variance = 1/4ΣΗ – 0.108)? t=1

Variance = 0.02462

b-2.

Standard Deviation = (0.02462)1/2

Standard Deviation = 15.69%

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