Bear Stearns' stock price closed at $100,$105,$56,$30,$2 over five successive weeks.The weekly standard deviation of the stock price calculated from this sample is:

Question

Quizplus · Accepted Answer

First, we calculate the sample mean:
(100+105+56+30+2)/5 = 58.6
Next, we calculate the sample variance:
[(100-58.6)^2 + (105-58.6)^2 + (56-58.6)^2 + (30-58.6)^2 + (2-58.6)^2]/4
= 4910.24
Finally, we take the square root of the sample variance to get the standard deviation:
sqrt(4910.24) ≈ 70.08
Therefore, the closest answer choice is C) $44.43.

Bear Stearns' Stock Price Closed at $100,$105,$56,$30,$2 Over Five Successive