The closing prices for Stock B from December to June are: $42.90,$44.20,$51.50,$49.60,$45.50,$46.30,and $42.50.What is the standard deviation of returns over the six-month period?
A) 0.295%
B) 0.868%
C) 5.436%
D) 9.318%

Question

Quizplus · Accepted Answer

Compute monthly returns: 3.0303%,16.5158%,-3.6893%,-8.2661%,1.7582%,-8.2073% Average return: 3.0303%+16.5158%-3.6893%-8.2661%+1.7582%-8.2073%)/6 = 0.1903% ₆ σ = √[∑ (r_i-0.1903%)²]/(6-1)= √0.008683 = 9.318% ⁱ⁼¹

The Closing Prices for Stock B from December to June