You've observed the following returns on Pine Computer's stock over the past five years: -26.7 percent, 14.8 percent, 32.6 percent, 2.9 percent, and 21.9 percent. a. What was the arithmetic average return on the stock over this five-year period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the variance of the returns over this period? Note: Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616. c. What was the standard deviation of the returns over this period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Arithmetic average return b. Variance c. Standard deviation % %

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter13: Direct Foreign Investment
Section: Chapter Questions
Problem 1IEE
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You've observed the following returns on Pine Computer's
stock over the past five years: -26.7 percent, 14.8 percent,
32.6 percent, 2.9 percent, and 21.9 percent.
a. What was the arithmetic average return on the stock
over this five-year period?
Note: Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places,
e.g., 32.16.
b. What was the variance of the returns over this period?
Note: Do not round intermediate calculations and
round your answer to 6 decimal places, e.g., .161616.
c. What was the standard deviation of the returns over this
period?
Note: Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places,
e.g., 32.16.
Arithmetic average return
b. Variance
c. Standard deviation
96
%
Transcribed Image Text:You've observed the following returns on Pine Computer's stock over the past five years: -26.7 percent, 14.8 percent, 32.6 percent, 2.9 percent, and 21.9 percent. a. What was the arithmetic average return on the stock over this five-year period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the variance of the returns over this period? Note: Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616. c. What was the standard deviation of the returns over this period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Arithmetic average return b. Variance c. Standard deviation 96 %
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