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Arithmetic Mean & Variance

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November 15th, 2022

Here is the problem I’m stuck on and need help understanding:

Dennis Industries has primary earnings per common share for the past 5 years, $2.68, $1.03, $2.26, $4.30 & $3.58. The annual report of Dennis Industries also gave these returns on stockholder equity for the same five-year period (in percent) : 13.2, 5.0, 10.2, 17.5 and 12.9

a. What is the arithmetic mean return?
b. What is the variance?

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