An asset had annual returns of 13,10,-14,3,and 36 percent,respectively,for the past five years.What is the standard deviation of these returns?
A) 8.96 percent
B) 16.05 percent
C) 17.92 percent
D) 18.09 percent
E) 20.03 percent

Question

Quizplus · Accepted Answer

Mean = (0.13 + 0.10 - 0.14 + 0.03 + 0.36) / 5 = 0.096 Var = [(0.13 - 0.096)² + (0.10 - 0.096)² + (-0.14 - 0.096)² + (0.03 - 0.096)² + (0.36 - 0.096)²] / (5 - 1) = 0.032735 Std Dev = √ (0.032735) = 18.09 percent

An Asset Had Annual Returns of 13,10,-14,3,and 36 Percent,respectively,for the Past