Question

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?
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

the arithmetic average return on the company's stock is 10.20%

the variance of the company's returns over this period is 2.04

the standard deviation of the company’s returns over this period is 1.43

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
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 6 percent,...
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 6 percent, -14 percent, 24 percent, 14 percent, and 17 percent. The average inflation rate over this period was 3.2 percent and the average T-bill rate was 5.25 percent.    Requirement 1: What was the average real return on Crash-n-Burn’s stock? (Do not round intermediate calculations.) (Click to select)6.01%6.61%12.90%6.31%5.71%     Requirement 2: What was the average nominal risk premium on Crash-n-Burn’s stock? (Do not round intermediate...
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 20 percent,...
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 20 percent, –12 percent, 17 percent, 20 percent, and 10 percent. Suppose the average inflation rate over this period was 1.7 percent and the average T-bill rate over the period was 4.6 percent. What was the average real risk-free rate over this time period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   Average real risk-free rate...
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 20 percent,...
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 20 percent, –12 percent, 17 percent, 20 percent, and 10 percent. Suppose the average inflation rate over this period was 1.7 percent and the average T-bill rate over the period was 4.6 percent. What was the average real risk-free rate over this time period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   Average real risk-free rate...
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...
You’ve observed the following returns on SkyNet Data Corporation’s stock over the past five years: 19...
You’ve observed the following returns on SkyNet Data Corporation’s stock over the past five years: 19 percent, 24 percent, 11 percent, −9 percent, and 13 percent.      a.What was the arithmetic average return on the company’s stock over this 5-year period?      b.What was the variance of the company’s returns over this period? The standard deviation? Suppose the average inflation rate over this period was 3.6 percent and the average T-bill rate over the period was 4.1 percent.      c.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...
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...
9. Calculating Returns and Variability You’ve observed the following returns on Yasmin Corporation’s stock over the...
9. Calculating Returns and Variability You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 19 percent, −13 percent, 7 percent, 25 percent, and 16 percent. a. What was the arithmetic average return on the company’s stock over this five-year period? b. What was the variance of the company’s stock returns over this period? The standard deviation? 10. Calculating Real Returns and Risk Premiums In Problem 9, suppose the average inflation rate over this period was...
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?
You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 18 percent,...
You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 18 percent, –3 percent, 16 percent, 11 percent, and 10 percent. Suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 5.5 percent. a. What was the average real return on the company's stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average real return      ...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT