Question

The last four years of returns for a share are as​ follows: Year 1 2 3...

The last four years of returns for a share are as​ follows:

Year

1

2

3

4

Return

−4.4​%

28.5​%

12.1​%

4.2​%

a. What is the average annual​ return?

b. What is the variance of the​ share's returns?

c. What is the standard deviation of the​ share's returns?

​Note: Enter your answers for the average return and standard deviation as percentages. For the​ variance, enter your answer as a decimal number.

a. The average return is .................... ​%. ​(Enter your response as a percent rounded to two decimal​ places.)

b. The variance of the returns is .................... ​(Round to five decimal​ places.)

c. The standard deviation is .................... ​​%. ​(Enter your response as a percent rounded to two decimal​ places.)

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Answer #1

a. The average return is 10.10 ​%.

b. The variance of the returns is 0.01959

c. The standard deviation is 14.00 ​​%.

Calculations as below:

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