Question

A company has the following returns over the past 30 months:

Month Ret.(%) Month Ret.(%) Month Ret.(%)

1) 3 11   -3 21 -1

2) -16 12 -2 22 -24

3) 31 13 -8 23 -14

4) 33 14 2 24 -19

5) -23 15 35 25 -19

6) -17 16 11 26 33

7) 8 17 -20 27 -18   

8) -19 18 15 28 23

9) -13 19 -12 29 6

10 -17 20 17 30 5

What is the stock’s standard deviation?

Answer 1

The standard deviation is 18.55%

This is computed using excel STDEV function.

The data is eneterd in cells D1 to D30

WORKINGS