Downtown Industries common stock had returns of 5.2,10.3,9.3,and 9.5 percent,respectively,over the past four years.What is the standard deviation of these returns?
A) 2.29 percent
B) 2.38 percent
C) 2.41 percent
D) 2.59 percent
E) 2.82 percent

Question

Quizplus · Accepted Answer

Mean = (0.052 + 0.103 + 0.093 + 0.095) / 4 = 0.0858 Var = [(0.052 - 0.0858)² + (0.103 - 0.0858)² + (0.093 - 0.0858)² + (0.095 - 0.0858)²] / (4 - 1) = 0.00052492 Std Dev = √ (0.00052492) = 2.29 percent

Downtown Industries Common Stock Had Returns of 5