You find a certain stock that had returns of 14 percent, -27 percent, 19 percent, and 21 percent for four of the last five years. The average return of the stock over this period was 9.5 percent. What is the standard deviation of the stock's returns?

Question

Quizplus · Accepted Answer

To find the standard deviation, first calculate the variance by finding the squared deviations from the mean (9.5%), averaging them, and then taking the square root. The calculations result in a standard deviation of approximately 20.59 percent.

You Find a Certain Stock That Had Returns of 14