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In four of the last five years, your investment earned you the following returns: 15%, -22%,...

In four of the last five years, your investment earned you the following returns: 15%, -22%, 4%, and 41%. The average return earned over this period was -5%. Calculate the standard deviation of the stock’s returns over the last 5 years. (Hint: round to six places after decimal)

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Answer #1

Stock return for missing year = -63.00% (-0.05*5)-(0.15-0.22+0.04+0.41) deviation^2 year returns 15.00% -22.00% 4.00% 41.00%

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