Question

The return pattern on your favorite stock has been 5%, 8%, -12%, 15%, 21% over the last five years. What has been your average return and holding period return over the last 5 years?

Answer 1

Given:

S.D=8

Mean=12

Coefficient of variaation

=(\frac{S.D}{Mean})*100\\\\=(\frac{8}{12})100\\

=(0.6666)x100

=66.66