The standard deviation of the past five monthly returns for K and Company are 2.28 percent, 2.64 percent, -1.05 percent, 4.25 percent, and 9.25 percent. What is the standard deviation?
A)1.45 percent
B)1.62 percent
C)3.47 percent
D)3.76 percent

Question

Quizplus · Accepted Answer

The standard deviation is calculated by finding the square root of the average of the squared deviations from the mean. The mean of the returns is 3.074 percent. The squared deviations are calculated, averaged, and then the square root is taken, resulting in a standard deviation of approximately 3.76 percent.

The Standard Deviation of the Past Five Monthly Returns for K