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The returns on a portfolio over the last five years were: --5.2 percent, 21.6 percent, 4.5...

The returns on a portfolio over the last five years were: --5.2 percent, 21.6 percent, 4.5 percent, 11.7 percent, and 5.9 percent. What is the standard deviation of these returns?

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Answer #1

Ans 9.86%

YEAR RETURN (X -Average Return of X)^2
1 -5.2 166.410000
2 21.6 193.210000
3 4.5 10.240000
4 11.7 16.000000
5 5.9 3.240000
Total 38.5 389.100000
Average Return = Total Return / NO of years
38.5 / 5
7.70
Variance = sum of (X -Average Return of X)^2 / (no of years - 1)
389.10 / ( 5 - 1)
97.275
Standard Deviation = Square root of Variance
Square root of 97.275
9.86
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