Problem:
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 14 percent, -7 percent, 17 percent, 15 percent, and 10 percent.
Required:
Question 1: What was the arithmetic average return on Crash-n-Burn's stock over this five-year period?
Question 2: What was the variance of Crash-n-Burn's returns over this period?
Question 3: What was the standard deviation of Crash-n-Burn's returns over this period?
Note: Show supporting computations in good form.