The last four years of returns for a stock are as shown here: a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2 4 Return +27.82% +3.51% 1 -4.17% 3 + 11.88% X

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter13: Direct Foreign Investment
Section: Chapter Questions
Problem 1IEE
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The last four years of returns for a stock are as shown here:
a. What is the average annual return?
b. What is the variance of the stock's returns?
c. What is the standard deviation of the stock's returns?
Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format.
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Year
4
Return
+3.51%
1
- 4.17%
2
+27.82%
3
+ 11.88%
X
Transcribed Image Text:The last four years of returns for a stock are as shown here: a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 4 Return +3.51% 1 - 4.17% 2 +27.82% 3 + 11.88% X
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