Question

A stock has the following historical stock prices. What is the standard deviation of the stock’s  returns?

Year	Price
2016	$82
2017	$94
2018	$74
2019	$82
2020	$60

Answer 1

A B D 1 2 Year 3 4 Price ($) =(return of X-average return of X)^2 2016 82.00 12.96000 2017 94.00 243.36000 2018 74.00 19.36000 2019 82.00 12.96000 2020 60.00 338.56000 5 7 8 9 78.40 Average return 10 Total 11 Standard Deviation =sum of return/number of years 627.20000 11.2 =[{sum of (return of stock-average return)^2}^(1/2)]/number of years

А B с 1 Price ($) 82 94 2 Year 3 2016 4 2017 5 2018 6 2019 7 2020 =(return of X-average return of X)^2 =(B3-$B$9)^2 =(B4-$B$9)^2 = (B5-$B$9)^2 =(B6-$B$9)^2 =(B7-$B$9)^2 74 82 60 8 =SUM(B3:38)/5 =sum of return/number of years 9 Average return 10 Total 11 Standard Deviation 12 =SUM(C3:08) =(C10/5)^(1/2) = [{sum of (return of stock-average return)^2}^(1/2)]/number of years