Standard Deviation The standard deviation of the past five monthly returns for K and Company are 2.28 percent,2.64 percent,-1.05 percent,4.25 percent,and 9.25 percent.What is the standard deviation?
A)1.45 percent
B)1.62 percent
C)3.47 percent
D)3.76 percent

Question

Quizplus · Accepted Answer

The standard deviation is calculated by finding the square root of the variance. First, calculate the mean of the returns, then find the squared deviations from the mean, average those squared deviations, and finally take the square root. The correct standard deviation for the given returns is approximately 3.76 percent.

Standard Deviation the Standard Deviation of the Past Five Monthly