Calculating returns and variability


You've observed the following returns on Mary Ann Data Corporation's stock over the past five years: 34 percent, 16 percent, 19 percent, - 21 percent, and 8 percent.

a. What was the arithmetic average return on Mary Ann's stock over this five- year period?

b. What was the variance of Mary Ann's returns over this period? The standard deviation?

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Finance Basics: Calculating returns and variability
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