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A comapny zk's five year historical returns on its stocks are as follows 12% 10% 5%...

A comapny zk's five year historical returns on its stocks are as follows 12% 10% 5% 4% and 10 % what is the standard deviation of the return of the stocks based on these past data
12.93%

6.47%

8.55%

7.29% response immediately please help

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Answer #1

Ans: NOne of the options are correct, standard deviation = 3.1241%

Count N = 5

Sum of all return = 12+10+5+4+10 = 41 %

Mean = ( Sum of all return / N ) = 41 / 5

= 8.2

Standard deviation =

=

=

= 3.1241 %

Standard deviation = 3.1241 %

NOne of the options are true. Please check.

Variance 2 = 9.76

Note 1:

Year(i) Return(xi) (xi-µ) (xi-µ) Calculation (xi-µ)^2
1 12 3.8 12-8.2 14.44
2 10 1.8 10-8.2 3.24
3 5 -3.2 5-8.2 10.24
4 4 -4.2 4-8.2 17.64
5 10 1.8 10-8.2 3.24

= 14.44+3.24+10.24+17.64+3.24 = 48.8

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