Question

You are a financial manager and have observed the following returns on Kam Steel Corporation stock...

You are a financial manager and have observed the following returns on Kam Steel Corporation stock over the past ten years: 7%, −12%, 11%, -38%, 14%, 22%, -26%, 18%, 20%, and 23%. Based on the given information, please answer questions a and b.

What was the arithmetic average return on Kam Steel Corporation stock over this 10-year period?

What was the variance of Kam Steel Corporation stock's returns over this period? The standard deviation

Homework Answers

Answer #1

Variance is the sum of square of deviation from the mean

Standard Deviation is the square root of variance

Mean is the sum of observations divide by number of observations

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