Big Diesel Incorporated
Consider the following historical returns for Big Diesel Incorporated:

-Refer to Big Diesel Incorporated.What is the standard deviation of the returns over the five year time period?

Question

Big Diesel Incorporated
Consider the following historical returns for Big Diesel Incorporated:
 
-Refer to Big Diesel Incorporated.What is the standard deviation of the returns over the five year time period?

Quizplus · Accepted Answer

avg.return = (.05 + .09 - .08 + .05 + .20)/5 = .31/5 = .062 sum of squared deviations = (.05 - .062)² + (.09-.062)² + (-.08-.062)² + (.05-.062)² + (.2-.062)² = .04028 standard deviation = (1/4 * 0.04028)^.5 =.1003

Big Diesel Incorporated Consider the Following Historical Returns for Big Diesel Incorporated