1. Given the data in Example 3, calculate the sample standard deviation. 2. Given the data in...
Question:
1. Given the data in Example 3, calculate the sample standard deviation.
2. Given the data in Example 3, calculate the target downside deviation if the target is 2 percent.
3. Compare the standard deviation, the target downside deviation if the target is 2 percent, and the target downside deviation if the target is 3 percent.
Example 3
Consider the monthly returns on a portfolio as shown in Exhibit 11:
Transcribed Image Text:
Exhibit 11: Monthly Portfolio Returns Month January February March April May June July August September October November December Return (%) 5 3 -1 4 2 0 4 3 965 0
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1 2 3 The standard deviation is based on the deviation from the mean or 27 12 225 The standar...View the full answer
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