5. a stock's daily return over the past week is 1%,1.5%, -1%, -1.5%, and 0%. What is its average andstandard deviation (pick the closest one)?0%, 1.27%0%, 1.58%0%, 1.41%0%, 1.14%

Answered: .5%, -1%, -1.5%, and 0%. What is its…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 1P: The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market...

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5. a stock's daily return over the past week is 1%,
1.5%, -1%, -1.5%, and 0%. What is its average and
standard deviation (pick the closest one)?
0%, 1.27%
0%, 1.58%
0%, 1.41%
0%, 1.14%

Expert Solution

Step 1average and standard deviation

Average is also known as mean which shows the middle or central value of data. It is also called a measure of central tendency.

Standard Deviation the deviation of data from the mean or central value. If items fall far away from the central value then it indicates a high standard deviation. It is also known as a measure of dispersion.

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