Ford Motor Company had realized returns of 10%, 20%, -10%, and -10% over four quarters. What...

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Question

Answer 1

Answer #1

Average Return = (0.1 + 0.2 - 0.1 - 0.1) /4

= 0.025

Std Dev = {(R1 - Average)^2 + (R2 - Average)^2 + (R3 - Average)^2 + (R4 - Average)^2 }/'(sample size -1)

= { (0.1 - 0.025)^2 + (0.2 - 0.025)^2 + (-0.1 - 0.025)^2 + (-0.1 - 0.025)^2 } /(4-1)

= 0.15 = 15% Answer

The option C is correct.

Please let me know in case you have any queries and I will be happy to assist you.

Answer 2

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