Sun Corporation has had returns of -6 percent, 16 percent, 18 percent, and 28 percent for the past four years.Calculate the standard deviation of the returns using the correction for the loss of a degree of freedom shown below.When variance is estimated from a sample of observed returns, we add the squared deviations and divide by N -1, where N is the number of observations.We divide by N -1 rather than N to correct for a loss of a degree of freedom.The formula is. Where is the market return in period t and rm is the mean of the values of rmt.
A) 11.6 percent
B) 14.3 percent
C) 13.4 percent
D) 14.0 percent
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