Question

The returns of Company A for the past six months are 12%, 11%, 16%, 8%, 13%,...

  1. 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.

Homework Answers

Answer #1

Ans 2.49%

YEAR RETURN (X -Average Return of X)^2
1 12 0.111111
2 11 1.777778
3 16 13.444444
4 8 18.777778
5 13 0.444444
6 14 2.777778
Total 74 37.333333
Average Return = Total Return / NO of years
74 / 6
12.33
Variance = sum of (X -Average Return of X)^2 / no of years
37.333333 / 6
6.2222
Standard Deviation = Square root of Variance
Square root of 6.2222
2.49
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