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You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 3 percent,...

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 3 percent, –9 percent, 25 percent, 19 percent, and 17 percent.

  

What was the arithmetic average return on the company's stock over this five-year period?

   

What was the variance of the company's returns over this period?

   

What was the standard deviation of the company’s returns over this period?

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Answer #1

deviation^2 year Crash n burn 3.00% -9.00% 25.00% 19.00% 17.00% 11.00% deviation (returns-average) -8.00% -20.00% 14.00% 8.00

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