You’ve observed the following returns on Doyscher Corporation’s stock over the past five years: –12 percent, 21 percent, 27 percent, 6 percent, and 17 percent.
Requirement 1: What was the arithmetic average return on the stock over this five-year period?
Requirement 2: (a) What was the variance of the returns over this period?
(b) What was the standard deviation of the returns over this period?