A stock had returns of 11 percent, -18 percent, -21 percent, 5 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 + 0.05 + 0.34)/5 = .022;F1F1F1S1F1F1F10 =F1F1F1S1F1F1F10 [1/(5 - 1)] [(0.11 - 0.022)² + (-0.18 - 0.022)² + (-0.21 -0.022)² + (0.05 - 0.022)² + (0.34 - 0.022)²] = 22.60 percent

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