Ajax Corporation has experienced returns of 12%, 15%, 8% and 2% returns over the past four...

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Question

Ajax Corporation has experienced returns of 12%, 15%, 8% and 2% returns over the past four...

Ajax Corporation has experienced returns of 12%, 15%, 8% and 2% returns over the past four years. Given this information, calculate the company's standard deviation.

Question 1 options:

	4.88%
	5.04%
	5.62%
	6.04%
	None of the above

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Answer 1

Answer #1

rate positively ..

Computation of standard deviation

year	Return	(Return-9.25%)^2
1	12%	0.08%
2	15%	0.33%
3	8%	0.02%
4	2%	0.53%
Total	37%	0.95%

Expected return=	9.25%
37%/4

Standard deviation =	5.62%
(0.95%/(4-1))^0.5

Ans =		5.62%

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Answer 2

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