The last four years of returns for a stock are as shown here
|
Year
|
1
|
2
|
3
|
4
|
|
|
Return
|
-3.8%
|
+27.7%
|
+12.1%
|
+4.2%
|
a. What is the average annual return?
b. What is the variance of the stock's returns?
c. What is the standard deviation of the stock's returns?
Note?:
Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format.