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The past five monthly returns for Kohl’s are 3.60 percent, 3.77 percent, ?1.74 percent, 9.28 percent,...

The past five monthly returns for Kohl’s are 3.60 percent, 3.77 percent, ?1.74 percent, 9.28 percent, and ?2.62 percent. Compute the standard deviation of Kohls’ monthly returns. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

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Answer #1

Average return : [3.60 +3.77 -1.74 +9.28 -2.62 ]/5

           = 12.29/5

             = 2.458

Variance : 1/n [(x1-ER)^2+ (x2-ER)^2+....+(x3-ER)^5]

   1/5[(3.6-2.458)^2+(3.77-2.458)^2+(-1.74-2.458)^2+ (9.28-2.458)^2+ (-2.62-2.458)^2]

   1/5 [1.3042+ 1.7213+ 17.6232+ 46.5397+ 25.7861]

1/5 [92.9745]

    18.5949

standard deviation =square root of variance

           SR(18.5949)

             4.31%

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