Compute the risk and return for the following data and evaluate your findings Year 2016 2017 2018 2019 2020 12

Finance Jan 17, 2021

Compute the risk and return for the following data and evaluate your findings Year 2016 2017 2018 2019 2020 12.5% Annual Returns 5.5% 22.5% 2.75% -26.5%

Expert Solution

Year	Stock
2016	12.50%
2017	5.50%
2018	22.50%
2019	2.75%
2020	-26.50%

Average(return)=	3.35%
Standard dev (Risk)=	18.35%

Where
Average or Mean = Sum of all observations/Count of all observations
Sample Standard deviation =((∑^{k=1 to N} (observation_k – average))/(N-1))^(1/2)

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