In: Finance
how do I calculate the standard deviation of the stock returns by hand using this formula? Please show equations
| Returns KR |
| -0.028046707 |
| -0.00137424 |
| -0.073959399 |
| 0.023774212 |
| 0.000725709 |
| 0.093908593 |
| 0.040437549 |
| -0.036635855 |
| -0.013787899 |
| -0.001010467 |
| -0.016520524 |
| 0.013027037 |
| -0.07275805 |
| 0.006569397 |
| 0.002900627 |
| 0.027838008 |
| 0.035174196 |
| -0.044512422 |
| -0.001778114 |
| -0.008550123 |
| 0.060007208 |
| -0.028523993 |
| -0.017531506 |
| -0.126695243 |
| -0.004495254 |
| -0.000821074 |
| 0.010682065 |
| -0.028455365 |
| 0.074058593 |
| 0.004285193 |
| -0.030256065 |
| 0.029600028 |
| 0.003496525 |
| -0.062330684 |
| -0.015213977 |
| -0.03836428 |
| 0.049101291 |
| 0.013790208 |
| -0.083264582 |
| -0.023830978 |
| 0.001842499 |
| 0.00643668 |
| -0.009136514 |
| -0.009681867 |
| 0.035381773 |
| 0.048561093 |
| -0.028301859 |
| 0.034986635 |
| 0.016745341 |
| 0.043074367 |
|
0.061943277 |
Formula for standard deviation given below:

Here, x bar is the average return of population and n= number of population and here it is 51
Hence,

Sum of all the column C is 0.085125
Hence, standard deviation= SQrt of (0.085125/51)=4.09%