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Problem:

You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 16 percent, -16 percent, 18 percent, 28 percent, and 10 percent.

Required:

Question 1: What was the arithmetic average return on Crash-n-Burn's stock over this five-year period?

Question 2: What was the variance of Crash-n-Burn's returns over this period?

Question 3: What was the standard deviation of Crash-n-Burn's returns over this period?

Note: Please show how you came up with the solution.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91171863

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