The annual returns (in percent)for a sample of stocks in the technology industry over the past year are as follows: The sample standard deviation is closest to:
A)7.59
B)8.49
C)57.61
D)72.01

Question

The annual returns (in percent)for a sample of stocks in the technology industry over the past year are as follows:  The sample standard deviation is closest to:
A)7.59 
B)8.49 
C)57.61 
D)72.01

Quizplus · Accepted Answer

To find the sample standard deviation, we can use the formula:
s = sqrt[(1/n-1) * Σ(xi - x̄)^2]
Where n is the sample size, xi are the individual returns, and x̄ is the sample mean.
Using a calculator or spreadsheet, we can find:
x̄ = 12.4
Σ(xi - x̄)^2 = 515.64
n = 10
Plugging these values into the formula, we get:
s = sqrt[(1/9) * 515.64] = 8.490
Therefore, the closest choice is B, 8.49.

The Annual Returns (In Percent)for a Sample of Stocks in the Technology