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Oxxo corporation’s stock returns for years 1 – 4 were (20.00%), 15.00%, 10.00% and 20.00%. Given...

Oxxo corporation’s stock returns for years 1 – 4 were (20.00%), 15.00%, 10.00% and 20.00%. Given this information, calculate the standard deviation of the returns.

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Answer #1

Ans 15.56

YEAR RETURN (X -Average Return of X)^2
1 -20 689.062500
2 15 76.562500
3 10 14.062500
4 20 189.062500
Total 25 968.750000
Arithmetic Average = Total Return / NO of years
25 / 4
6.25
Variance = sum of (X -Average Return of X)^2 / no of years
968.75 / 4
242.1875
Standard Deviation = Square root of Variance
Square root of 242.1875
15.56
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