Question

^{Year Stock X Stock Y unanswered 5.00% 7.00% not_submitted 10.00% 18.00% 20.00% 6.00% 4 0.00% 11.00% What is the standard deviation of Stock Y? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)}

Answer 1

Stock Y:

Expected Return = [0.07 + 0.18 + 0.06 + 0.11] / 4
Expected Return = 0.42 / 4
Expected Return = 0.1050 or 10.50%

Variance = [(0.07 - 0.105)^2 + (0.18 - 0.105)^2 + (0.06 - 0.105)^2 + (0.11 - 0.105)^2] / 3
Variance = 0.0089 / 3
Variance = 0.002967

Standard Deviation = (0.002967)^(1/2)
Standard Deviation = 0.0545 or 5.45%