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A stock has returns for five years of 14 percent, -16 percent, 12 percent, 23 percent, and 4 percent, respectively. The stock has an average return of ________ percent and a standard deviation of ________ percent.

Respuesta :

Answer:

the average return is 7.8% and standard deviation is 28.97%

Explanation:

The computation of the average return and standard deviation is as follows

For average return

= (14% - 16% + 12% + 23% + 4%) ÷ 5

= 7.8%

Now the standard deviation is

= (1 ÷ 4 × (0.14 - 0.078)^2 + (-0.16 - 0.078)^2 + (0.12 - 0.078)^2 + (0.23 - 0.078)^2 + (0.04 - 0.078)^2)^1 ÷ 2

= 28.97%

Hence, the average return is 7.8% and standard deviation is 28.97%

Answer: first blank 7.8% second 28.97

Explanation:

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