A stock had annual returns of 8 percent,-2 percent,4 percent,and 20 percent over the past four years.What is the standard deviation of these returns?
A)16.33%
B)16.09%
C)7.10%
D)9.29%
E)7.99%

Question

Quizplus · Accepted Answer

Mean = (.08 - .02 + .04 + .20)/4 = .075Total squared deviation = (.08 - .075)² + (-.02 - .075)² + (.04 - .075)² + (.20 - .075)² = .0259Standard deviation = √.0259/(4 - 1)= .0929 = 9.29%

A Stock Had Annual Returns of 8 Percent,-2 Percent,4 Percent,and