Consider the adjusted closing prices for Roxy Stock What is the standard deviation of returns for Roxy stock?

Question

Consider the adjusted closing prices for Roxy Stock  What is the standard deviation of returns for Roxy stock?

Quizplus · Accepted Answer

To calculate the standard deviation of returns, we need to first calculate the returns. We can do this by taking the natural logarithm of the ratios of each day's adjusted closing price to the previous day's adjusted closing price. Once we have the returns, we can calculate the standard deviation using Excel's STDEV function. Doing this for the given data gives us a standard deviation of returns of 0.081. Therefore, the correct choice is C.

Consider the Adjusted Closing Prices for Roxy Stock What