A stock had returns of 12 percent,6 percent,14 percent,and -3 percent annually for the past four years.What is the mean and standard deviation of these returns?
A)8.75%;9.11%
B)8.75%;10.29%
C)7.25%;7.63%
D)7.25%;13.22%
E)7.25%;11.08%

Question

Quizplus · Accepted Answer

Mean = (.12 + .06 + .14 - .03)/4 = .0725,or 7.25%Total squared deviation = (.12 - .0725)² + (.06 - .0725)² + (.14 - .0725)² + (-.03 - .0725)² = .017475Standard deviation = √.017475/(4 - 1)= .0763,or 7.63%

A Stock Had Returns of 12 Percent,6 Percent,14 Percent,and -3