Respuesta :
Answer: Average realized stock = 21.59%,
The preceding data series represents a sample
Standard deviation = 0.7522
Explanation:
Average realized stock = 21.25% + 14.45% + 25.50% + 35.70% + 11.05% = 1.07595/5 = 21.95%
Standard deviation =
21.25% - 21.95% = -7.14% (-7.14%)^2 = 0.509
25.50% - 21.95% = 3.91% (3.91%)^2 = 0.512
35.70% - 21.95% = 14.11% (14.11%)^2 = 1.990
11.05% - 21.95% = -10.54% (-10.54%)^2 = 1.110
_____
Sum = 3.761/5 = 0.7522
The average realized return on BLM’s stock is 21.59%.
The standard deviation of BLM’s historical returns is 0.753134.
What is the average realized return?
The average realized stock return can be determined by adding the stock return and dividing it by the number of years.
Average realized stock return = (21.25% + 14.45% + 25.50% + 35.70% + 11.05%) / 5 = 21.59%
What is the standard deviation?
In order to determine the standard deviation, take the following steps:
Subtract the average realized stock return from the stock return for each year and square the result:
2014: (21.25% - 21.59)² = 0.001156
2015: (14.45 - 21.59)² = 0.509796
2016: (25.50 - 21.59)² = 0.152881
2017: (35.70 - 21.59)² = 1.990921
2018: (11.05 - 21.59)² = 1.110916
Add the squares together and divide by 5: 3.76567 / 5 = 0.753134
To learn more about mean, please check: https://brainly.com/question/25842202
