Question

In: Finance

A stock had returns of 19.02 percent, 22.72 percent, −16.16 percent, 9.44 percent, and 28.51 percent...

A stock had returns of 19.02 percent, 22.72 percent, −16.16 percent, 9.44 percent, and 28.51 percent for the past five years. What is the standard deviation of the returns?

Solutions

Expert Solution

R D=R-12.706 E=D^2
Year Return(percentage) Deviation from Mean Deviation Squared
1 19.02 6.314 39.8666
2 22.72 10.014 100.2802
3 -16.16 -28.866 833.246
4 9.44 -3.266 10.66676
5 28.51 15.804 249.7664
SUM 63.53 SUM 1233.826
Mean return 12.706 (63.53/5)
Variance of Return =(Sum of Deviation Squared)/(5-1)
Variance of return 308.45648 (1233.826/4)
Standard Deviation =Square Root of (Variance)
Standard deviation of Returns(%) 17.5629291 (SQRT(308.45648)
Standard deviation of Returns 17.56% (Rounded to two decimals)
Excel STDEV function can also be used over returns to find Standard Deviation
Standard Deviation 17.5629291 (Excel Command ;STDEV(19.02,22.72,-16.16,9.44,28.51))
Standard Deviation 17.56%

Related Solutions

A stock had returns of 16.39 percent, ?6.31 percent, and 23.51 percent for the past three...
A stock had returns of 16.39 percent, ?6.31 percent, and 23.51 percent for the past three years. What is the standard deviation of the returns?
A stock had returns of 10 percent, -4 percent, 4 percent, and 18 percent over the...
A stock had returns of 10 percent, -4 percent, 4 percent, and 18 percent over the past four years. What is the standard deviation of these returns?
A stock had returns of 8 percent, –8 percent, 3 percent, and 14 percent over the...
A stock had returns of 8 percent, –8 percent, 3 percent, and 14 percent over the past 4 years. What is the standard deviation of this stock for the past four years? Multiple choice 16.1 percent 4.7 percent 9.3 percent 4.3 percent
A stock had returns of 5 percent, 9 percent, 11 percent, −8 percent, and 6 percent...
A stock had returns of 5 percent, 9 percent, 11 percent, −8 percent, and 6 percent over the past five years. What is the standard deviation of these returns? Multiple Choice 11.14 percent 7.44 percent 8.44 percent 4.60 percent 5.97 percent
A stock had returns of 15 percent, 2 percent, 10 percent, 12 percent, -7 percent, and...
A stock had returns of 15 percent, 2 percent, 10 percent, 12 percent, -7 percent, and -3 percent over the past six years. What is the geometric average return for this time period?
A stock had returns of 19.02 percent, 22.72 percent, −16.16 percent, 9.44 percent, and 28.51 percent...
A stock had returns of 19.02 percent, 22.72 percent, −16.16 percent, 9.44 percent, and 28.51 percent for the past five years. What is the standard deviation of the returns?
A stock had returns of 16.15 percent, 23.91 percent, −11.72 percent, and 9.59 percent over four...
A stock had returns of 16.15 percent, 23.91 percent, −11.72 percent, and 9.59 percent over four of the past five years. The arithmetic average return over the five years was 13.19 percent. What was the stock return for the missing year?
a stock has had returns of 15 percent, 26 percent, -20 percent and 5 percent over...
a stock has had returns of 15 percent, 26 percent, -20 percent and 5 percent over the last 4 years. what is the holding period return for the stock?
h A stock had returns of 19.06 percent, 22.79 percent, −16.25 percent, 9.47 percent, and 28.54...
h A stock had returns of 19.06 percent, 22.79 percent, −16.25 percent, 9.47 percent, and 28.54 percent for the past five years. What is the standard deviation of the returns? 22.02% 3.10% 17.62% 31.04% 14.10%
You find a certain stock that had returns of 14 percent, -27 percent, 19 percent, and...
You find a certain stock that had returns of 14 percent, -27 percent, 19 percent, and 21 percent for four of the last five years, respectively. What is the average return of the stock over this period? What is the standard deviation of the stock's returns?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT