What was the arithmetic average return on crash-n-burns


You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 5 percent, -15 percent, 25 percent, 20 percent, and 17 percent.

Requirement 1: What was the arithmetic average return on Crash-n-Burn’s stock over this five year period?

a.) 13.00% b.) 8.42% c.) 12.38% d.) 10.40% e.) 11.34%

Requirement 2:

(a) What was the variance of Crash-n-Burn’s returns over this period? (Do not round intermediate calculations.)

a.)0.02558 b.) 0.02046 c.) 0.02642 d.) 0.02328 e.) 0.02072

(b) What was the standard deviation of Crash-n-Burn’s returns over this period? (Do not round intermediate calculations.)

a.) 14.31% b.) 16.26% c.) 19.03% d.) 15.99% e.) 12.95%

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