Ford Motor Company had realized returns of 10%,25%,-20%,and -15% over four quarters.What is the quarterly standard deviation of returns for Ford?

Question

Quizplus · Accepted Answer

To calculate the standard deviation, first find the mean of the returns: (10% + 25% - 20% - 15%) / 4 = 0%. Then, calculate the squared deviations from the mean: (10-0)^2, (25-0)^2, (-20-0)^2, (-15-0)^2. Average these squared deviations: (100 + 625 + 400 + 225) / 4 = 337.5. Finally, take the square root of this average to find the standard deviation: √337.5 ≈ 21.21%.

Ford Motor Company Had Realized Returns of 10%,25%,-20%,and -15% Over