Question

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?

Homework Answers

Answer #1

Ans 4.39%

YEAR RETURN (X -Average Return of X)^2
1 7.55 0.378225
2 13.48 28.249225
3 10.15 3.940225
4 1.48 44.689225
Total 32.66 77.256900
Average Return = Total Return / NO of years
32.66 / 4
8.17
Variance = sum of (X -Average Return of X)^2 / no of years
77.256900 / 4
19.3142
Standard Deviation = Square root of Variance
Square root of 19.3142
4.39
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