Compute the standard deviation of Kohl's monthly returns. The past five monthly returns for Kohl's are 5.55 percent, 8.62 percent, −4.44 percent, −1.52 percent, and 9.75 percent.
A) 4.92 percent
B) 5.07 percent
C) 6.28 percent
D) 6.12 percent

Question

Quizplus · Accepted Answer

To compute the standard deviation, 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 of that average. The calculated standard deviation is approximately 6.28 percent.

Compute the Standard Deviation of Kohl's Monthly Returns