Question

over the past six years, a stock and annual returns of 14%, -3%, 8%, 21%, -16%,...

over the past six years, a stock and annual returns of 14%, -3%, 8%, 21%, -16%, and 4%. what is the Standard Deviation of these returns?

13.05
11.27
15.08
14.40
13.59

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer,

FORMULA

μ=Mean

σ=Standard deviation

N=Total number of population

xi=Each value of the population


Calculation of standard deviation

YEAR Annual returns(xi) Xi-μ (Xi-μ)^2

1

 14 9.33 87.11
2 -3 -7.67 58.78
3 8 3.33 11.11
4 21 16.33 266.78
5 -16 -20.67 427.11
6 4 -0.67 0.44
TOTAL 28 851.33

μ=28/6=4.67

Standard deviation=root of 851.33/6

the root of 141.89

=11.912

This is the method to find out the standard deviation but the option given is not matching. During the test, it is better to select a nearby amount so we can select 11.27 even though it is not precise answer to the question.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Over the past six years, a stock had annual returns of 10 percent, 5 percent, 7...
Over the past six years, a stock had annual returns of 10 percent, 5 percent, 7 percent, 8 percent, 2 percent, and -11 percent, respectively. What is the standard deviation of these returns?
A stock had returns of 15 percent, 21 percent, and -3 percent over the past 3...
A stock had returns of 15 percent, 21 percent, and -3 percent over the past 3 years. What is the mean of the stock’s returns over the past 3 years minus the sample standard deviation of the stock’s returns from the past 3 years? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
Over the past six years, a stock produced returns of 12 percent, 16 percent, -3 percent,...
Over the past six years, a stock produced returns of 12 percent, 16 percent, -3 percent, 7 percent, -5 percent, and 9 percent. Based on these six years, what range of returns would you expect to see 95 percent of the time? -23.18 percent to 31.48 percent -18.58 percent to 26.58 percent -14.28 percent to 25.28 percent -10.69 percent to 22.69 percent -2.34 percent to 14.34 percent
The returns of Company A for the past six months are 12%, 11%, 16%, 8%, 13%,...
The returns of Company A for the past six months are 12%, 11%, 16%, 8%, 13%, and 14%. Calculate the standard deviation of this company’s return.
The following table presents annual returns for B&G stock over the past four years: Year 1...
The following table presents annual returns for B&G stock over the past four years: Year 1 2 3 4 Return 7.55% 13.48% 10.15% 1.48% What is the standard deviation of B&G's returns?
Over the past six years, a stock produced returns of 21 percent, -18 percent, 2 percent,...
Over the past six years, a stock produced returns of 21 percent, -18 percent, 2 percent, 11 percent, -1 percent, and 24 percent. Based on these six years, what range of returns would you expect to see 99 percent of the time? A. -53.24 percent to 40.24 percent B. -40.24 percent to 53.24 percent C. -36.67 percent to 48.38 percent D. -48.38 percent to 36.67 percent E. -54.00 percent to 72.00 percent
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 4 percent,...
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 4 percent, –15 percent, 26 percent, 19 percent, and 14 percent.    What was the arithmetic average return on the company's stock over this five-year period?     What was the variance of the company's returns over this period?     What was the standard deviation of the company’s returns over this period?
The returns of Company A for the past six months are 12%, 11%, 16%, 8%, 13%,...
The returns of Company A for the past six months are 12%, 11%, 16%, 8%, 13%, and 14%. Calculate the standard deviation of this company’s return. In your portfolio you have invested 30% and 70% in Stock X and Stock Z, respectively. The standard deviation of X is 12%. The standard deviation of Z is 9%. The correlation between X and Z is 0.50. Calculate the portfolio standard deviation. For the same problem before, now calculate the portfolio standard deviation...
You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 19 percent,...
You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 19 percent, –13 percent, 16 percent, 21 percent, and 10 percent. a. What was the arithmetic average return on the company's stock over this five-year period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Average return            {C} {C}{C} % b-1 What was the variance of the company's stock returns over this period? (Do not...
Question 15 Over the past 5 years, a stock produced returns of 23 percent, -39 percent,...
Question 15 Over the past 5 years, a stock produced returns of 23 percent, -39 percent, 4 percent, and 16 percent, and -12 percent. Based on these 5 years, which of the following is true? Group of answer choices Average return is higher than standard deviation. Average return is equal to standard deviation. Average return is lower than standard deviation. Both average return and standard deviation are positive. Both average return and standard deviation are negative.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT