Question

Using the below returns, what is the average return, the variance, and the standard deviation PLEASE SHOW WORK

1.38%

11.77%

21.61%

-4.23%

31.22%

Answer 1

average return = sum of all returns / number of observations

=> (1.38+11.77+21.61-4.23+31.22)/5 observations

=> 12.35%.

variance;

observation	(mean - observation)^2
1.38	(12.35-1.38)^2=>120.3409
11.77	(12.35-11.77)^2=>0.3364
21.61	(12.35-21.61)^2=>85.7476
-4.23	(12.35- (-4.23)^2=>274.8964
31.22	(12.35-31.22)^2=>356.0769
total	837.3982
variance	(837.3982/5)=>167.47964

standard deviation = variance ^(1/2)

=> (167.47964)^(1/2)

=>12.9414