Question

In: Finance

how do I calculate the standard deviation of the stock returns by hand using this formula?...

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

Solutions

Expert Solution

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%


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