Determine the average annual return


Problem:

The last four years of returns for a stock are as follows:

Year 1: -4.5%
Year 2: +27.7%
Year 3: +11.9%
Year 4: +4.2%

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 variance must be entered in decimal format

Solution Preview :

Prepared by a verified Expert
Finance Basics: Determine the average annual return
Reference No:- TGS02068378

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)