The past five monthly returns for Kohls are 372 percent 407

The past five monthly returns for Kohl’s are 3.72 percent, 4.07 percent, ?1.86 percent, 9.34 percent, and ?2.74 percent. Compute the standard deviation of Kohls’ monthly returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.) (PS: The ANSWER IS NOT 4.41)

Solution

Mean = ( 3.72 + 4.07 - 1.86 +9.34-2.74) /5

= 2.506

Standard Deviation =[ Variance / (Time -1) ] ^ ( 1/2)

= [97.20592 / (5-1) ] ^ (1/2)

= 4.93

Hence the correct answer is 4.93