The stock of CM Punk, Inc. has earned annual returns of 5%, -2%, 8%, 12%, and 4% over the last five years, respectively. What is the arithmetic average and standard deviation of these returns? Multiple Choice Arithmetic average = 5.40%; Standard deviation = 4.63% Arithmetic average = 5.40%; Standard deviation = 5.18% Arithmetic average = 6.75%; Standard deviation = 29.45%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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The stock of CM Punk, Inc. has
earned annual returns of
5%, -2%, 8%, 12%, and 4% over
the last five years, respectively. What
is the arithmetic average and
standard deviation of these returns?
Multiple Choice Arithmetic average
= 5.40%; Standard deviation
= 4.63% Arithmetic average
= 5.40%; Standard deviation
= 5.18% Arithmetic average
= 6.75%; Standard deviation
= 29.45%
Transcribed Image Text:The stock of CM Punk, Inc. has earned annual returns of 5%, -2%, 8%, 12%, and 4% over the last five years, respectively. What is the arithmetic average and standard deviation of these returns? Multiple Choice Arithmetic average = 5.40%; Standard deviation = 4.63% Arithmetic average = 5.40%; Standard deviation = 5.18% Arithmetic average = 6.75%; Standard deviation = 29.45%
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