What is the approximate standard deviation of returns if over the past 4 years an investment returned 8%, -12%, -12%, and 15%?
A) 9.26%
B) 10.26%
C) 11.26%
D)12.01%

Name: What is the approximate standard deviation of returns if over the past 4 years an investment returned 8%, -12%, -12%, and 15%? A) 9.26% B) 10.26% C) 11.26% D)12.01%
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Quizplus · Accepted Answer

Mean = (8% - 12 - 12 + 15)/4 = -0.25%Variance = {[8 - (-0.25)]² + [-12 - (-0.25)]² + [-12 - (-0.25)]² + [15 - (-0.25)]²}/4 = 144.1875Std dev = 144.1875^.5 = 12.01%

What Is the Approximate Standard Deviation of Returns If Over