A stock had returns of 11 percent,-18 percent,-21 percent,20 percent,and 34 percent over the past five years.What is the standard deviation of these returns?

Question

Quizplus · Accepted Answer

Average return = (0.11 - 0.18 - 0.21 + 0.20 + 0.34)/5 = .052;σ = √[1/(5 - 1)] [(0.11 - 0.052)² + (-0.18 - 0.052)² + (-0.21 -0.052)² + (0.05 - 0.052)² + (0.34 - 0.052)²] = 24.01 percent

A Stock Had Returns of 11 Percent,-18 Percent,-21 Percent,20 Percent,and