Calculate the standard deviation for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
Question
Calculate the standard deviation for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
Solution
To calculate the standard deviation for each stock, you need to follow these steps:
-
First, you need to have the return data for each stock. If you don't have it, you can calculate it by subtracting the initial price from the final price and then dividing by the initial price.
-
Once you have the return data, calculate the mean (average) return for each stock. You do this by adding up all the returns and dividing by the number of returns.
-
Next, subtract the mean from each individual return. This gives you a series of deviations from the mean.
-
Square each of these deviations. This gives you a series of squared deviations.
-
Take the average of these squared deviations. This is called the variance.
-
Finally, take the square root of the variance. This gives you the standard deviation.
Remember to round your final answers to 2 decimal places.
Similar Questions
A stock has had returns of 14%, 27%, 18%, and 5% for the past four years. Calculate the standard deviation of the returns.
Consider the following information: Rate of Return if State OccursState of Economy Probability of State of Economy Stock A Stock BRecession 0.15 0.07 − 0.24 Normal 0.55 0.16 0.21 Boom 0.30 0.27 0.26 Calculate the expected return for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Expected returnStock A %Stock B % Calculate the standard deviation for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Standard deviationStock A %Stock B %
The covariance between the returns of stock A and stock B is −125. The standard deviation of the rates of return is 20 for stock A and 10 for stock B. The correlation coefficient of the rates of return between A and B is closest to __________.Multiple Choice−0.3750.3750.625−0.625
Consider the following information pertaining to a stock for the last few years:Year2016-172017-182018-192019-202020-21DPS (Rs.)18.5131516179102021-2220Share4666048738701336Price(Rs.)Determine1. Dividend yield, capital gain yield, total return for each period2. Average return, variance and standard deviation
Chad checked the remaining stock for each garment sold at the store where he worked. For 6 garments, there remained:74 items54 items28 items63 items81 items60 itemsWhat was the mean absolute deviation of the amounts of remaining stock?If the answer is a decimal, round it to the nearest tenth.mean absolute deviation (MAD): itemsSubmit
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.