You find a certain stock that had returns of 13.2 percent, –21.6 percent, 27.6 percent, and 18.6 percent for four of the last five years. Assume the average return of the stock over this period was 11.2 percent. What is the standard deviation of the stock’s returns?

You find a certain stock that had returns of 13.2 percent, –21.6 percent, 27.6 percent, and 18.6 percent for four of the last five years. Assume the average return of the stock over this period was 11.2 percent. What is the standard deviation of the stock’s returns?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 17P

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