Youve observed the following returns on Barnett Corporations

You’ve observed the following returns on Barnett Corporation’s stock over the past five years: –26.7 percent, 14.8 percent, 32.6 percent, 2.9 percent, and 21.9 percent.

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.)
  
Arithmetic average return             %

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.)
  
Variance            
  
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.)
  
Standard deviation  

Solution

Arithmetic average return =Total returns/Total time period

=(-26.7+14.8+32.6+2.9+21.9)/5=9.10%

Standard deviation=[Total (Return-Mean)^2/(Time period-1)]^(1/2)

=[2068.66/(5-1)]^(1/2)
=(2068.66/4)^(1/2)

22.74%(Approx).

Variance=Standard deviation^2

=0.051717(Approx).