Question

In: Finance

End of Year Stock Price $ Returns % 2007 $ 20.91 ------- 2008 14.06 -32.76% 2009...

End of Year Stock Price $ Returns %
2007 $ 20.91 -------
2008 14.06 -32.76%
2009 24.81 76.46
2010 35.57 43.37
2011 32.58 -8.41
2012 48.02 47.37
2013 67.43 40.42
2014 51.26 -23.98
2015 36.91 -27.99
2016 47.71 29.26
2017 44.55 -6.62

I received that correct answers, however I do not know how to solve them. Please write out equations for calculator use. Thank you.

a.) What is the average return?

ANSWER: 13.71%

How do you get that? Show Work.

b.) What is the standard deviation?

ANSWER: 38.19%

How do you get that? Show Work.

c.) What is the Variance of return?

ANSWER: 0.145870

How do you get that? Show Work.

Solutions

Expert Solution

a. Average Return -

Where,

N = No. of years

AR =Average Return

b. Standard Deviation (SD) -

c.) Variance of return

Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.

jeff jeffy answered 5 months ago
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