Question

You observe quarterly returns on stock A of 1.45%, -2.78%, -0.71%, and -1.32%. What is the...

You observe quarterly returns on stock A of 1.45%, -2.78%, -0.71%, and -1.32%. What is the sample annualized standard deviations of these returns? Hint: To annualize the standard deviation of subperiod returns, multiply your answer by the square root of the number of those subperiods in one year.

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Answer #1

Annualized standard deviation of returns= 3.512834%

Calculation as follows:

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