Fortescue Mining had realised returns of 10%, 20%, 20%, and 10% over four quarters. What is the quarterly standard deviation of returns for Fortescue calculated from this sample?

Question

Quizplus · Accepted Answer

The quarterly standard deviation of returns for Fortescue calculated from this sample is 5.77%. This is calculated by taking the square root of the variance, which is calculated by taking the sum of the squared deviations from the mean and dividing by the number of observations minus one. In this case, the mean return is 15%, and the variance is 16.67%. Therefore, the standard deviation is 5.77%.

Fortescue Mining Had Realised Returns of 10%, 20%, 20%, and 10