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# Finding mean and standard deviation of returns

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Question #1

Calculate arithmetic average returns, the variances, and the standard deviations for X and Y.
Returns
Year X Y
1 17 23
2 22 34
3 8 11
4 -15 -32
5 10 21

Question #2

What are the arithmetic and geometric returns for the stock?

Year Price Dividend Arithmetic Return Geometric Return
1 \$43.15 -
2 \$48.13 \$0.45
3 \$57.05 \$0.49
4 \$45.13 \$0.55
5 \$52.05 \$0.62
6 \$61.13 \$0.68.

##### Solution Summary

Solutions depict the steps to estimate the arithmetic mean, geometric mean and standard deviation in the given case. Calculations are carried out with the help of suitable built-in functions in MS Excel.

Solution provided by:
###### Education
• BEng (Hons) , Birla Institute of Technology and Science, India
• MSc (Hons) , Birla Institute of Technology and Science, India
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##### Operations Management

This quiz tests a student's knowledge about Operations Management