You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 5 percent, -10 percent, 30 percent, 15 percent, and 13 percent.
Requirement 1:
What was the arithmetic average return on Crash-n-Burn’s stock over this five year period?
Requirement 2:
(a) What was the variance of Crash-n-Burn’s returns over this period? (Do not round intermediate calculations.)
(b) What was the standard deviation of Crash-n-Burn’s returns over this period? (Do not round intermediate calculations.)