Over the past four years a stock produced annual returns of 4%, -18%, - 21%, and 48%, respectively. Based on this information, what is the standard deviation for this stock?

Question

Quizplus · Accepted Answer

To calculate the standard deviation, first find the average return, then calculate the squared deviations from the mean, find their average, and take the square root. The calculations result in a standard deviation of approximately 31.85%.

Over the Past Four Years a Stock Produced Annual Returns