Final answer:
The stock's expected return is -0.27%, the variance is 147.65%, and the standard deviation is 12.15%.
Step-by-step explanation:
a) Expected return:
To find the expected return of the stock, we need to calculate the average of the annual returns.
Expected return = ( -14.29% + 16.30% + 11.88% + -16.96% ) / 4 = -0.27%
Therefore, the expected return of the stock is -0.27%.
b) Variance:
To find the variance, we need to calculate the squared difference between each annual return and the expected return, and then take the average.
Variance = ( (-14.29% - (-0.27%))² + (16.30% - (-0.27%))² + (11.88% - (-0.27%))² + (-16.96% - (-0.27%))² ) / 4 = 147.65%
Therefore, the variance of the stock is 147.65%.
c) Standard deviation:
To find the standard deviation, we take the square root of the variance.
Standard deviation = √(147.65%) = 12.15%
Therefore, the standard deviation of the stock is 12.15%.