Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: - 5%, 15%, 20%; MC: 8%, 8%, 20%. Calculate the standard deviation (S.D.) of return for FC and MC.
A) FC: 10% MC: 12%
B) FC: 18.7% MC: 9.8%
C) FC: 13.2% MC: 6.9%
D) None of the above

Question

Quizplus · Accepted Answer

The standard deviation for FC is calculated as 13.2% and for MC as 6.9% based on the given historical returns.

Florida Company (FC) and Minnesota Company (MC) Are Both Service