Standard Deviation The standard deviation of the past five monthly returns for K and Company are 4.25 percent,4.13 percent,-2.05 percent,3.25 percent,and 7.75 percent.What is the standard deviation?
A)1.40 percent
B)3.37 percent
C)3.53 percent
D)16.83 percent

Question

Quizplus · Accepted Answer

To find the standard deviation, first calculate the mean of the returns, then find the squared deviations from the mean, average those squared deviations, and finally take the square root of that average. The correct calculation results in a standard deviation of approximately 3.53 percent.

Standard Deviation the Standard Deviation of the Past Five Monthly