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: 

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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