Use the table for the question(s)below.
Consider the following realized annual returns:
-The standard deviation of the returns on Stock A from 2000 to 2009 is closest to:
A)33.2%.
B)16.5%.
C)31.5%.
D)11.0%.

Question

Use the table for the question(s)below.
Consider the following realized annual returns: 
-The standard deviation of the returns on Stock A from 2000 to 2009 is closest to:
A)33.2%. 
B)16.5%. 
C)31.5%. 
D)11.0%.

Quizplus · Accepted Answer

The standard deviation is a measure of the volatility of a stock's returns. A higher standard deviation indicates that the stock's returns are more volatile, while a lower standard deviation indicates that the stock's returns are less volatile. The standard deviation of the returns on Stock A from 2000 to 2009 is 33.2%, which is the highest of the four choices. Therefore, the correct answer is A.

Use the Table for the Question(s)below