Over the Past 4 Years, the Annual Rates of Return

question 33

Essay

Over the past 4 years, the annual rates of return on stock of Brown & Warren Inc. have been -2%, 4%, 14% and 6%, respectively, over the past four years. Compute the standard deviation of these returns.

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Definitions:

Variable Cost

Costs that are directly correlated with the amount of product produced.

Variable Cost Per Unit

Costs that change directly and proportionally with the level of production or sales volume.

Earnings Before Interest And Taxes

A measure of a firm's profitability that excludes interest and income tax expenses.

Fixed Costs

Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance costs.