Question

Returns on stock X are listed below: Period 1 2 3 4 5 6 7 Stock X 6% 5% -2% 10% 3% 8% -4% What is the mean of the data?

Answer 1

The mean of the data is of 3.7143%.

Explanation:

Mean of the data:

Sum of all returns divided by the number of returns.

Returns:

6% 5% -2% 10% 3% 8% -4%

7 returns.

Sum: 6 + 5 - 2 + 10 + 3 + 8 - 4 = 26%

Mean: 26%/7 = 3.7143%

The mean of the data is of 3.7143%.