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Michael purchased an investment for $315,000, which earned a return of -2% in the most recent...

Michael purchased an investment for $315,000, which earned a return of -2% in the most recent year. In the previous 3 years, the investment returns were 5%, -1% and 6%, respectively. Assuming all income has been reinvested, the standard deviation of the rates of return for the investment over the last 4 years is?

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Answer #1

as we are calculating standard deviation for last 4 years which is a sample. thus we divide sum by (N-1)

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