Below are the closing values and daily return on the S&P 500 for the last ten...

Below are the closing values and daily return on the S&P 500 for the last ten days. What are the daily and annualized standard deviations? You may use excel for this problem. Enter your answers as percent rounded to two decimal places.

Date	Closing value	Return
9/25/2019	2984.87	0.0062
9/26/2019	2977.62	-0.0024
9/27/2019	2961.79	-0.0053
9/30/2019	2976.74	0.0050
10/1/2019	2940.25	-0.0123
10/2/2019	2887.61	-0.0179
10/3/2019	2910.63	0.0080
10/4/2019	2952.01	0.0142
10/7/2019	2938.79	-0.0045
10/8/2019	2893.06	-0.0156

Expert Solution

Answer:

Assuming that there are 252 trading days in a given year:

Annualized standard deviation = SQRT(252) * Daily standard deviation

The above excel with 'show formula' is given below:

jeff jeffy answered 1 month ago

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