Sure, here are the steps to calculate the standard deviation of the returns:

Step 1: Calculate the mean (average) of the returns. Add up all the returns and divide by the number of returns.

Mean = (14% + 27% + 18% + 5%) / 4 = 16%

Step 2: Subtract the mean from each return to get the deviation of each return, then square the result.

(14% - 16%)^2 = 0.04%
(27% - 16%)^2 = 1.21%
(18% - 16%)^2 = 0.04%
(5% - 16%)^2 = 1.21%

Step 3: Calculate the mean of these squared deviations.

Mean = (0.04% + 1.21% + 0.04% + 1.21%) / 4 = 0.625%

Step 4: Take the square root of the result from step 3. This gives the standard deviation.

Standard deviation = sqrt(0.625%) = 7.9%

So, the standard deviation of the returns is 7.9%. However, this is not one of the options you provided. Please check the calculations or the options.

Question

Sure, here are the steps to calculate the standard deviation of the returns:

Step 1: Calculate the mean (average) of the returns. Add up all the returns and divide by the number of returns.

Mean = (14% + 27% + 18% + 5%) / 4 = 16%

Step 2: Subtract the mean from each return to get the deviation of each return, then square the result.

(14% - 16%)^2 = 0.04%
    (27% - 16%)^2 = 1.21%
    (18% - 16%)^2 = 0.04%
    (5% - 16%)^2 = 1.21%

Step 3: Calculate the mean of these squared deviations.

Mean = (0.04% + 1.21% + 0.04% + 1.21%) / 4 = 0.625%

Step 4: Take the square root of the result from step 3. This gives the standard deviation.

Standard deviation = sqrt(0.625%) = 7.9%

So, the standard deviation of the returns is 7.9%. However, this is not one of the options you provided. Please check the calculations or the options.

Knowee AI · Accepted Answer

Sure, here are the steps to calculate the standard deviation of the returns:

Step 1: Calculate the mean (average) of the returns. Add up all the returns and divide by the number of returns.

Mean = (14% + 27% + 18% + 5%) / 4 = 16%

Step 2: Subtract the mean from each return to get the deviation of each return, then square the result.

(14% - 16%)^2 = 0.04%
    (27% - 16%)^2 = 1.21%
    (18% - 16%)^2 = 0.04%
    (5% - 16%)^2 = 1.21%

Step 3: Calculate the mean of these squared deviations.

Mean = (0.04% + 1.21% + 0.04% + 1.21%) / 4 = 0.625%

Step 4: Take the square root of the result from step 3. This gives the standard deviation.

Standard deviation = sqrt(0.625%) = 7.9%

So, the standard deviation of the returns is 7.9%. However, this is not one of the options you provided. Please check the calculations or the options.

A stock has had returns of 14%, 27%, 18%, and 5% for the past four years. Calculate the standard deviation of the returns.Group of answer choices9.1%8.2%8.8%6.4%

Question

Solution

Similar Questions

Upgrade your grade with Knowee