A stock has returns for five years of 23 percent,-17 percent,8 percent,22 percent,and 3 percent,respectively.The stock has an average return of ______ percent and a standard deviation of _____ percent.

Question

Quizplus · Accepted Answer

Average return = (0.23 - 0.17 + 0.08 + 0.22 + 0.03)/5 = 0.078σ² = [(0.23 - 0.078)² + (-0.17 - 0.078)² + (0.08 - 0.078)² + (0.22 - 00.078)² + (0.03 - 00.078)²]/(5 - 1) = 0.026770σ = √0.026770 = 16.36 percent

A Stock Has Returns for Five Years of 23 Percent,-17