Question

Over the past five years, Corny Dogs, Inc. shareholders have had returns of 13.97%, 14.42%, 9.95%,...

Over the past five years, Corny Dogs, Inc. shareholders have had returns of 13.97%, 14.42%, 9.95%, 8.61%, and 8.88%, respectively. What is the standard deviation of returns for Corny Dogs’ stock?

Standard deviation%

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Step-1:Calculation of Average Return
Average Return = Total Return/Life
= (13.97%+14.42%+9.95%+8.61%+8.88%)/5
= 11.17%
Step-2:Calcuation of variance of the return
Year Return Average Return
a b c=(a-b)^2
1 0.1397 0.1117 0.000784
2 0.1442 0.1117 0.001056
3 0.0995 0.1117 0.000149
4 0.0861 0.1117 0.000655
5 0.0888 0.1117 0.000524
Total 0.003169
Variance = 0.003169 / 5
= 0.000634
Step-3:Calculation of Standard Deviation
Standard Deviation = Variance ^ (1/2)
= 0.000634 ^ (1/2)
= 0.025175
Thus, Standrad deviation is 2.52%
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Anderson stock had returns of 6%, -22%, 18%, 12%, and -2% over the past five years....
Anderson stock had returns of 6%, -22%, 18%, 12%, and -2% over the past five years. What is the standard deviation of Anderson's returns? A. 11.68 percent B. 10.21 percent C. 18.74 percent D. 13.49 percent E. 15.52 percent
Over the past six years, a stock had annual returns of 10 percent, 5 percent, 7...
Over the past six years, a stock had annual returns of 10 percent, 5 percent, 7 percent, 8 percent, 2 percent, and -11 percent, respectively. What is the standard deviation of these returns?
You’ve observed the following returns on Balboa, Inc. stock over the past five years: 15 percent,...
You’ve observed the following returns on Balboa, Inc. stock over the past five years: 15 percent, -15 percent, 17 percent, 27 percent, and 10 percent. Suppose the average T-bill rate over the period was 4.1 percent. What was the average risk premium on Balboa, Inc. stock?
Over the past 5 years, a stock has had total returns of 5.0%, 10.0%, -5.0%, 7.2%...
Over the past 5 years, a stock has had total returns of 5.0%, 10.0%, -5.0%, 7.2% and 15.0%. What is the standard deviation of the stock’s return over the past 5 years? 6.63% 15.4% 7.4% 11.2%
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 4 percent,...
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 4 percent, –15 percent, 26 percent, 19 percent, and 14 percent.    What was the arithmetic average return on the company's stock over this five-year period?     What was the variance of the company's returns over this period?     What was the standard deviation of the company’s returns over this period?
8. A stock had returns of 16.11 percent, 23.82 percent, −11.53 percent, and 9.58 percent over...
8. A stock had returns of 16.11 percent, 23.82 percent, −11.53 percent, and 9.58 percent over four of the past five years. The arithmetic average return over the five years was 13.16 percent. What was the stock return for the missing year? 9. A stock had returns of 17.59 percent, −7.11 percent, and 23.81 percent for the past three years. What is the standard deviation of the returns?
9. You’ve observed the following returns on Barnett Corporation’s stock over the past five years: -12...
9. You’ve observed the following returns on Barnett Corporation’s stock over the past five years: -12 percent, 23 percent, 18 percent, 7 percent, and 13 percent What was the arithmetic average return on the stock over this five-year period? What was the variance of the returns over this period? The standard deviation? 10. For problem 9, suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 4.3 percent. A What...
You’ve observed the following returns on Barnett Corporation’s stock over the past five years: –27.3 percent,...
You’ve observed the following returns on Barnett Corporation’s stock over the past five years: –27.3 percent, 15.2 percent, 33.4 percent, 3.1 percent, and 22.1 percent. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return % = What was the variance of the returns over this period? (Do not round intermediate calculations and round your...
A stock had returns of 15 percent, 21 percent, and -3 percent over the past 3...
A stock had returns of 15 percent, 21 percent, and -3 percent over the past 3 years. What is the mean of the stock’s returns over the past 3 years minus the sample standard deviation of the stock’s returns from the past 3 years? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 19 percent,...
You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 19 percent, –13 percent, 16 percent, 21 percent, and 10 percent. a. What was the arithmetic average return on the company's stock over this five-year period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Average return            {C} {C}{C} % b-1 What was the variance of the company's stock returns over this period? (Do not...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT