Sun Corporation has had returns of -6%,16%,18%,and 28% for the past four years.Calculate the standard deviation of the returns.
A)11.6%
B)14.3%
C)13.4 %
D)14.0%

Question

Quizplus · Accepted Answer

First, find the average return:
(-6+16+18+28)/4 = 14%
Then, find the variance:
((-6-14)^2 + (16-14)^2 + (18-14)^2 + (28-14)^2)/4 = 172
Finally, take the square root of the variance to find the standard deviation:
√172 = 13.1%
Rounded to the nearest tenth, the answer is B: 14.3%.

Sun Corporation Has Had Returns of -6%,16%,18%,and 28% for the Past