Question

The last 4-year stock returns of MYLORD AND LADY Inc. are presented in the table below: Year Return .4 -3 -2 -1 4.7% 16.4% 30.1% 119.9% Calculate standard deviation of the stock. A. 9.07% B. 10.48% C. 17.78% D. 0.00% E. 17.02% F. None of the above

hi please explain step by step and what u did

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Answer #1

Mean = [\sum_{i=1}^{n}Ri] / n

= [4.7% + 16.4% + 30.1% + 19.9%] / 4 = 71.1% / 4 = 17.775%

S.D. = [{\sum_{i=1}^{n}(mean - Ri)2} / (n - 1)]1/2

= [{(4.7% - 17.775%)2 + (16.4% - 17.775%)2 + (30.1% - 17.775%)2 + (19.9% - 17.775%)2}

/ (4 - 1)]1/2

   = [329.27 / 3]1/2 = [109.76]1/2 = 10.48%

Hence, Option "B" is correct.

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