You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 18 percent, –3 percent, 16 percent, 11 percent, and 10 percent.
a. What was the arithmetic average return on Crash-n-Burn’s stock over this five-year period?
b. What was the variance of Crash-n-Burn’s returns over this period?
c. What was the standard deviation of Crash-n-Burn’s returns over this period?