Homework Soursecompany x yielded historical returns of 1639 2698 3757 2427
company x yielded historical returns of -16.39%, -26.98%, 37.57%, 24.27%, -7.84%, and 6.91%. calculate the standard deviation of the returns for company x.
company x yielded historical returns of -16.39%, -26.98%, 37.57%, 24.27%, -7.84%, and 6.91%. calculate the standard deviation of the returns for company x.
company x yielded historical returns of -16.39%, -26.98%, 37.57%, 24.27%, -7.84%, and 6.91%. calculate the standard deviation of the returns for company x.
Solution
Average return=Total of returns/Total time period
=(-16.39-26.98+37.57+24.27-7.84+6.91)/6
=2.923%(Approx)
Standard deviation=[Total (Return-Mean)^2/(Time Period-1)]^(1/2)
which is equal to
=24.72%(Approx).
| Return | (Return-Mean)^2 |
| -16.39 | (-16.39-2.923)^2=373.0048444 |
| -26.98 | (-26.98-2.923)^2=894.2093444 |
| 37.57 | (37.57-2.923)^2=1200.391511 |
| 24.27 | (24.27-2.923)^2=455.6801778 |
| -7.84 | (-7.84-2.923)^2=115.8493444 |
| 6.91 | (6.91-2.923)^2=15.89351111 |
| Total=3055.027733% |
