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%