You've observed the following returns on Yamauchi Corporation's stock over the past five years: -27.9 percent, 15.6 percent, 34.2 percent, 3.3 percent, and 22.3 percent. a. What was the arithmetic average return on the stock over this five-year period? (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? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) c. What was the standard deviation of the 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.)

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
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Problem 10-9 Calculating Returns and Variability (LO 1]
You've observed the following returns on Yamauchi Corporation's stock over the past
five years: -27.9 percent, 15.6 percent, 34.2 percent, 3.3 percent, and 22.3 percent.
a. What was the arithmetic average return on the stock over this five-year period? (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? (Do not round intermediate
calculations and round your answer to 6 decimal places, e.g., 32.161616.)
c. What was the standard deviation of the 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.)
а.
Arithmetic average return
%
b.
Variance
с.
Standard deviation
%
Transcribed Image Text:Problem 10-9 Calculating Returns and Variability (LO 1] You've observed the following returns on Yamauchi Corporation's stock over the past five years: -27.9 percent, 15.6 percent, 34.2 percent, 3.3 percent, and 22.3 percent. a. What was the arithmetic average return on the stock over this five-year period? (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? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) c. What was the standard deviation of the 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.) а. Arithmetic average return % b. Variance с. Standard deviation %
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