A stock had returns of 13 percent,8 percent,1 percent,and −9 percent annually for the past 4 years.What is the mean and standard deviation of these returns?
A)4.33%; 9.54%
B)4.33%; 11.08%
C)3.25%; 9.54%
D)3.25%; 13.22%
E)3.25%; 11.08%

Question

Quizplus · Accepted Answer

Mean = (0.13 + 0.08 + 0.01 − 0.09)/ 4 = 0.0325,or 3.25% σ= {[(0.13 − 0.0325)² + (0.08 − 0.0325)² + (0.01 − 0.0325)² + (−0.09 − 0.0325)²] / (4 − 1)}^.5 = 0.0954 or 9.54%

A Stock Had Returns of 13 Percent,8 Percent,1 Percent,and −9