A stock had returns of 18.55 percent, −7.75 percent, and 24.05 percent for the past three...

Question

Question

A stock had returns of 18.55 percent, −7.75 percent, and 24.05 percent for the past three years. What is the standard deviation of the returns?

business finance

Answer 1

Answer #1

First we compute the average returnsas (18.55%-7.75%+24.05%)/3 = 11.6167%

Next calculate sum of (Return- Averge )^2

= (18.55%-11.6167%)^2+(-7.75%-11.6167%)^2+ (24.05-11.6167%)^2

= 577.7267

Standard deviation = SQRT( sum of (Return- Averge )^2/ (n-1))

= SQRT(577.7267/2)

=

16.99598 %

=17%

Answer 2

Similar Homework Help Questions

A stock had returns of 18 percent, 33 percent, and -3 percent over the past 3...

A stock had returns of 18 percent, 33 percent, and -3 percent over the past 3 years. What is the mean of the stock’s returns over the past 3 years minus the sample standard deviation of the stock’s returns from the past 3 years? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
A stock had returns of 18 percent, 27 percent, and -12 percent over the past 3...

A stock had returns of 18 percent, 27 percent, and -12 percent over the past 3 years. What is the mean of the stock’s returns over the past 3 years minus the sample standard deviation of the stock’s returns from the past 3 years? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
A stock had returns of 6 percent, 30 percent, and -9 percent over the past 3...

A stock had returns of 6 percent, 30 percent, and -9 percent over the past 3 years. What is the mean of the stock’s returns over the past 3 years minus the sample standard deviation of the stock’s returns from the past 3 years? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

A stock had annual returns of 6 percent, 13 percent, 11 percent, -8 percent, and 3 percent for the past five years, resp...

A stock had annual returns of 6 percent, 13 percent, 11 percent, -8 percent, and 3 percent for the past five years, respectively. What is the standard deviation of returns for this stock?
Connect Quiz 6 A stock had returns of 16 87 percent. -6.63 percent, and 23.63 percent...

Connect Quiz 6 A stock had returns of 16 87 percent. -6.63 percent, and 23.63 percent for the past three years. What is the standard deviation of the returns? Multiple Choice ο ο ο ο ο
A stock had returns of 18.53 percent. -5.55 percent, 20.78 percent, and 8.87 percent for the...

A stock had returns of 18.53 percent. -5.55 percent, 20.78 percent, and 8.87 percent for the past four years. What is the variance of the returns? Multiple Choice ο 00646 ο ο1721 ο 1977 ο O1434 ο O1913 A stock had returns of 17.75 percent. -11.68 percent, 23.60 percent, and 13.71 percent for the past four years. What is the standard deviation of the returns? Multiple Choice Ο Ο Ο Ο Ο

A stock had annual returns of 8 percent, 14 percent, and 2 percent for the past...

A stock had annual returns of 8 percent, 14 percent, and 2 percent for the past three years. Based on these returns, what is the probability that this stock will return more than 26 percent in any one given year?
A stock had returns of 1775 percent. -11.68 percent, 23.60 percent, and 13.71 percent for the...

A stock had returns of 1775 percent. -11.68 percent, 23.60 percent, and 13.71 percent for the past four years. What is the standard deviation of the returns? Ο Ο Ο Ο Ο Ο
A stock had returns of 17.39 percent, −11.26 percent, 22.94 percent, and 13.59 percent for the...

A stock had returns of 17.39 percent, −11.26 percent, 22.94 percent, and 13.59 percent for the past four years. What is the standard deviation of the returns? Multiple Choice 13.60% 2.28% 12.09% 15.11% 22.84%

A stock had returns of 6 percent, -22 percent, 18percent, 12 percent, and -2 percent over...

A stock had returns of 6 percent, -22 percent, 18percent, 12 percent, and -2 percent over the past five years. What is the standard deviation of these returns?