Question

The table below displays returns associated with a company's shares over the last 15 years.

Year	Return (% pa)
2005	9
2006	-2
2007	20
2008	-4
2009	18

Year	Return (% pa)
2010	8
2011	19
2012	1
2013	13
2014	-2

Year	Return (% pa)
2015	35
2016	-3
2017	28
2018	18
2019	31

Based on this historic data, calculate the expected return on the shares and its standard deviation. Give your answers as a percentage per annum to 2 decimal places.

a)Expected return =  % pa

b)Standard deviation =  % pa

Answer 1

Answer:

a.) Expected Return: 12.60% pa

b.) Standard deviation: 12.94% pa

Calculation:

Please find the attached images for a detailed solution and formula.

Hope this will help you. If you need more clarification in any of the steps let me know in comment.

All the Best!