The standard deviation of the past five monthly returns for K and Company are 4.25 percent, 4.13 percent, −2.05 percent, 3.25 percent, and 7.25 percent. What is the standard deviation?
A) 1.40 percent
B) 3.89 percent
C) 3.38 percent
D) 16.83 percent

Question

Quizplus · Accepted Answer

To calculate the standard deviation, first find the mean of the returns, then calculate the squared deviations from the mean, find their average, and take the square root. The standard deviation of these returns is approximately 3.38 percent.

The Standard Deviation of the Past Five Monthly Returns for K