Calculate an asset's standard deviation based on the following observed sample of returns: -5%, 3%, 8%,...

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Calculate an asset's standard deviation based on the following observed sample of returns: -5%, 3%, 8%,...

Calculate an asset's standard deviation based on the following observed sample of returns: -5%, 3%, 8%, 10%, -15%

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Answer 1

Answer #1

Average Return =(-5%+3%+8%+10%-15%)/5 =0.20%

Standard Deviation =(((-5%-0.20%)^2+(3%-0.20%)^2+(8%-0.2%)^2+(10%-0.2%)^2+(-15%-0.2%)^2)/(5-1))^0.5 =10.28%

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Answer 2

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