You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 15 percent, -6 percent, 18 percent, 14 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 and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b-1. What was the variance of the company's returns over this period? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 16161.) b-2. What was the standard deviation of the company's returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
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You've observed the following returns on SkyNet Data Corporation's stock over the past
five years: 15 percent, -6 percent, 18 percent, 14 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 and enter your answer as a
percent rounded to 1 decimal place, e.g., 32.1.)
b-1. What was the variance of the company's returns over this period? (Do not round
intermediate calculations and round your answer to 5 decimal places, e.g.,
.16161.)
b-2. What was the standard deviation of the company's returns over this period? (Do not
round intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
a. Average return
b-1. Variance
b-2. Standard deviation
10.2 %
72.16000
8.49 %
Transcribed Image Text:You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 15 percent, -6 percent, 18 percent, 14 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 and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b-1. What was the variance of the company's returns over this period? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What was the standard deviation of the company's returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Average return b-1. Variance b-2. Standard deviation 10.2 % 72.16000 8.49 %
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